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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. Uponcelose examinason Maple Group Ltd Income Statement of the financial information received, it was discovered that some figures in the balance sheet t Year Ended December 31,2020 were erroneously omitted due to an oversight by the accountant who is not available to fix the Revenues and gains: problem due to his unavoidable absence from work. In addition, the owners were concermed Sales revenue 369,500 11,800 Interest revenue Total revenues and gains Expenses Costof goods sold Depreciation expense Other operating expense Interest expense about the movement in the company's cashand cash equivalent given that the balance sheet does 381,300 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 prepara the statement of cash flows and it is expected 205,500 15,500 126,000 that this should be able to provide the needed clarity required by the owmers. The owners have asked each student from youraccounting course to assist with the needed clarification and have put forward the following financial information. 24,300 Total expenses 371,300 Income before incometaxes 10,000 16.300 (6,300) Incometax expense Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 Net Loss 2020 2019 Increasel(Decrease) Notes Acquisition offixed asset during 2020 65,400 Assets Cash and cash equivalent Accounts Receivable Sale proceed from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold ? ? 87,550 93,900 160,400 373,350 1,550 Inventories 98,540 58,500 Fixed Assets, net ? 2,900 49,900 56.460 Total Assets 316,890 Liabilities Accounts payable Accrued liabilities Requirements ? ? 950 22,850 82,000 24,940 140,500 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? Long-term notes payable Stockholders Equity: Common Stock (58,500) 2. Reconstruct the company's comparative balance sheet for 2019/2020using the information given and compute and show the missing figures to include the appropriate signas a positive or negative figure. ? 61,500 125,300 Retained earnings 54,800 (9.200) Total liabilities and stockholders' equity 373,350 316,890 56,460 3. Prepareacomplate statement of cash flows for 2020 using the indirect method using the information given.

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. Uponcelose examinason Maple Group Ltd Income Statement of the financial information received, it was discovered that some figures in the balance sheet t Year Ended December 31,2020 were erroneously omitted due to an oversight by the accountant who is not available to fix the Revenues and gains: problem due to his unavoidable absence from work. In addition, the owners were concermed Sales revenue 369,500 11,800 Interest revenue Total revenues and gains Expenses Costof goods sold Depreciation expense Other operating expense Interest expense about the movement in the company's cashand cash equivalent given that the balance sheet does 381,300 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 prepara the statement of cash flows and it is expected 205,500 15,500 126,000 that this should be able to provide the needed clarity required by the owmers. The owners have asked each student from youraccounting course to assist with the needed clarification and have put forward the following financial information. 24,300 Total expenses 371,300 Income before incometaxes 10,000 16.300 (6,300) Incometax expense Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 Net Loss 2020 2019 Increasel(Decrease) Notes Acquisition offixed asset during 2020 65,400 Assets Cash and cash equivalent Accounts Receivable Sale proceed from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold ? ? 87,550 93,900 160,400 373,350 1,550 Inventories 98,540 58,500 Fixed Assets, net ? 2,900 49,900 56.460 Total Assets 316,890 Liabilities Accounts payable Accrued liabilities Requirements ? ? 950 22,850 82,000 24,940 140,500 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? Long-term notes payable Stockholders Equity: Common Stock (58,500) 2. Reconstruct the company's comparative balance sheet for 2019/2020using the information given and compute and show the missing figures to include the appropriate signas a positive or negative figure. ? 61,500 125,300 Retained earnings 54,800 (9.200) Total liabilities and stockholders' equity 373,350 316,890 56,460 3. Prepareacomplate statement of cash flows for 2020 using the indirect method using the information given.

Intermediate Accounting: Reporting And Analysis
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 6P: Misclassifications Olson Companys bookkeeper prepared the following income statement and retained...
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The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just Maple Group Ltd Income Statement been prepare and presented to the owners by the company's Accountant. Uponclose examination of the financial information received, it was discovered that some figures in the balance sheet Year Ended December 31,2020 were erroneously omitted due to an oversight by the accountant who is notavailable to fix the Revenues and gains: problem due to his unavoidable absence from work. In addition, the owners were concerned Sales revenue 369,500 11,800 Interest revenue about the movement in the company's cashand cash equivalent given that the balance sheet does Total revenues and gains Expenses Costof goods sold Depreciation expense Other operating expense Interest expense Total expenses 381,300 not show or explain the reas on 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 205,500 15,500 126,000 24,300 that this should be able to provide the needed clarity required by the owners. The owners have asked each student from youraccounting course to assist with the needed clarification and have put forward the following financial information. 371,300 10,000 16,300 Income beforeincometaxes Incometax expense Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 Net Loss (6,300) Notes Acquisition offixed asset during 2020 Sale proceed from sale of plant asset Receiptfor issuance of notes payable Payment for note payable Dividend paid Book value of equipmentsold 2020 2019 Increase/(Decrease) Assets 65,400 Cash and cash equivalent ? ? 87,550 93,900 Accounts Receivable ? 1,550 58,500 Inventories Fixed Assets, net 98,540 2,900 160,400 373,350 ? 49,900 56.460 Total Assets 316,890 Liabilities Accounts payable Accrued liabilities Long-term notes payable Stockholders' Equity: Requirements ? ? 950 22,850 82,000 24,940 ? 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? 140,500 (58,500) 125,300 (9,200) 2. Reconstruct the company's comparative balance sheet for 2019/2020using the information given and compute and show the mis sing figures to include the appropriate sign as a positive or negative figure. Common Stock ? 61,500 Retained earnings 54,800 ? Total liabilities and stockholders'equity 373,350 316,890 56,460 3. Prepare a complete statement of cash flows for 2020 using the indirect method using the information given.
Transcribed Image Text:The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have just Maple Group Ltd Income Statement been prepare and presented to the owners by the company's Accountant. Uponclose examination of the financial information received, it was discovered that some figures in the balance sheet Year Ended December 31,2020 were erroneously omitted due to an oversight by the accountant who is notavailable to fix the Revenues and gains: problem due to his unavoidable absence from work. In addition, the owners were concerned Sales revenue 369,500 11,800 Interest revenue about the movement in the company's cashand cash equivalent given that the balance sheet does Total revenues and gains Expenses Costof goods sold Depreciation expense Other operating expense Interest expense Total expenses 381,300 not show or explain the reas on 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 205,500 15,500 126,000 24,300 that this should be able to provide the needed clarity required by the owners. The owners have asked each student from youraccounting course to assist with the needed clarification and have put forward the following financial information. 371,300 10,000 16,300 Income beforeincometaxes Incometax expense Maple Group Ltd Comparative Balance Sheet December 31, 2020 and 2019 Net Loss (6,300) Notes Acquisition offixed asset during 2020 Sale proceed from sale of plant asset Receiptfor issuance of notes payable Payment for note payable Dividend paid Book value of equipmentsold 2020 2019 Increase/(Decrease) Assets 65,400 Cash and cash equivalent ? ? 87,550 93,900 Accounts Receivable ? 1,550 58,500 Inventories Fixed Assets, net 98,540 2,900 160,400 373,350 ? 49,900 56.460 Total Assets 316,890 Liabilities Accounts payable Accrued liabilities Long-term notes payable Stockholders' Equity: Requirements ? ? 950 22,850 82,000 24,940 ? 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? 140,500 (58,500) 125,300 (9,200) 2. Reconstruct the company's comparative balance sheet for 2019/2020using the information given and compute and show the mis sing figures to include the appropriate sign as a positive or negative figure. Common Stock ? 61,500 Retained earnings 54,800 ? Total liabilities and stockholders'equity 373,350 316,890 56,460 3. Prepare a complete statement of cash flows for 2020 using the indirect method using the information given.
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