The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners.Prepare a complete statement of cash flows for 2020 using the indirect method using the information. Maple Group LtdIncome StatementYear Ended December 31,2020Revenues and gains:Sales revenue369,500Interest revenue11,800Total revenues and gainsExpensesCost of goods soldDepreciation expenseOther operating expenseInterest expenseTotal expenses381,300205,50015,500126,00024,300371,30010,00016,300Income before income taxesIncome tax expenseNet Loss(6,300)NotesAcquisition of fixed asset during 2020Sale proceed from sale of plant assetReceipt for issuance of notes payablePayment for note payableDividend paid65,40058,5002,900Book value of equipment sold Maple Group LtdComparative Balance SheetDecember 31, 2020 and 201920202019 Increase/(Decrease)AssetsCash and cash equivalent???87,55093,900160,400373,350Accounts Receivable1,550Inventories98,540?Fixed Assets, net?49,900Total Assets316,89056,460LiabilitiesAccounts payable95024,940140,500Accrued liabilities22,85082,000?Long-term notes payableStockholders' Equity:(58,500)125,300(9,200)56,460Common Stock?61,500Retained earnings54,800?Total liabilities and stockholders' equity373,350316,890

Cash flow statement is a statement which shows all cash inflows and cash outflows of business during…

Answered: The 2020 comparative balance sheet and…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 7E: Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December...

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The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just been prepare and presented to the owners by the company’s Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the owners were concerned about the movement in the company’s cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is expected that this should be able to provide the needed clarity required by the owners.

Prepare a complete statement of cash flows for 2020 using the indirect method using the information.

Maple Group Ltd
Income Statement
Year Ended December 31,2020
Revenues and gains:
Sales revenue
369,500
Interest revenue
11,800
Total revenues and gains
Expenses
Cost of goods sold
Depreciation expense
Other operating expense
Interest expense
Total expenses
381,300
205,500
15,500
126,000
24,300
371,300
10,000
16,300
Income before income taxes
Income tax expense
Net Loss
(6,300)
Notes
Acquisition of fixed asset during 2020
Sale proceed from sale of plant asset
Receipt for issuance of notes payable
Payment for note payable
Dividend paid
65,400
58,500
2,900
Book value of equipment sold

Maple Group Ltd
Comparative Balance Sheet
December 31, 2020 and 2019
2020
2019 Increase/(Decrease)
Assets
Cash and cash equivalent
?
?
?
87,550
93,900
160,400
373,350
Accounts Receivable
1,550
Inventories
98,540
?
Fixed Assets, net
?
49,900
Total Assets
316,890
56,460
Liabilities
Accounts payable
950
24,940
140,500
Accrued liabilities
22,850
82,000
?
Long-term notes payable
Stockholders' Equity:
(58,500)
125,300
(9,200)
56,460
Common Stock
?
61,500
Retained earnings
54,800
?
Total liabilities and stockholders' equity
373,350
316,890

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