Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 2021 2020| Increase/(Decrease) Assets 175,000 230,000 310,000 15,000 220,000 340,000 Cash Accounts Receivable Inventories Prepaid expenses 30,000 105,000 860,000 10,000 105,000 Intangible assets Equipment, net Total Assets 830,000 1,710,000 1,520,000 Liabilities 90,000 190,000 120,000 360,000 Accounts payable Accrued liabilities 140,000 160,000 140,000 450,000 Income tax payable Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1.710,000 Scenario: 400,000 640,000 (90,000) 250,000 The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been distributed at a meeting of the company's board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. 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 directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information grouped according to your first name initial. 400,000 (20,000) 1,520,000 Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue Gain on sale of plant assets 20,000 Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense 1,900,000 1,920,000 850,000 190,000 360,000 Total expenses Income before income taxes Income tax expense Net Income 1,400,000 520,000 180,000 340,000 Notes 320,000 120,000 Acquisition of plant asset during 2021 Sale proceeds from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 10,000 100,000 100,000 100,000
Auga Company Ltd Comparative Balance Sheet December 31, 2021 and 2020 2021 2020| Increase/(Decrease) Assets 175,000 230,000 310,000 15,000 220,000 340,000 Cash Accounts Receivable Inventories Prepaid expenses 30,000 105,000 860,000 10,000 105,000 Intangible assets Equipment, net Total Assets 830,000 1,710,000 1,520,000 Liabilities 90,000 190,000 120,000 360,000 Accounts payable Accrued liabilities 140,000 160,000 140,000 450,000 Income tax payable Long-term notes payable Stockholders' Equity Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 1.710,000 Scenario: 400,000 640,000 (90,000) 250,000 The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been distributed at a meeting of the company's board of directors. The members of the board of directors were desirous of knowing the reason or reasons why the cash balance different from the net income. 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 directors. The directors have asked each student from your accounting course to assist with the needed clarification and have put forward the following financial information grouped according to your first name initial. 400,000 (20,000) 1,520,000 Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: Sales revenue Gain on sale of plant assets 20,000 Total revenues and gains Expenses Cost of goods sold Depreciation expense Other operating expense 1,900,000 1,920,000 850,000 190,000 360,000 Total expenses Income before income taxes Income tax expense Net Income 1,400,000 520,000 180,000 340,000 Notes 320,000 120,000 Acquisition of plant asset during 2021 Sale proceeds from sale of plant asset Receipt for issuance of notes payable Payment for note payable Dividend paid Book value of equipment sold 10,000 100,000 100,000 100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Auga Company Ltd
Comparative Balance Sheet
December 31, 2021 and 2020
2021
2020 Increase/(Decrease)
Assets
Cash
15,000
175,000
230,000
Accounts Receivable
220,000
310,000
30,000
105,000
Inventories
340,000
10,000
Prepaid expenses
Intangible assets
Equipment, net
Total Assets
105,000
?
830,000
1.520,000
860,000
?
1,710,000
Liabilities
Accounts payable
Accrued liabilities
Income tax payable
Long-term notes payable
Stockholders' Equity
Common Stock
Retained earnings
Treasury stock
Total liabilities and stockholders' equity 1,710,000
90,000
140,000
190,000
120,000
360,000
160,000
140,000
?
Scenario:
450,000
400,000
250,000
?
The 2021 comparative balance sheet and income statement of Auga Company
Ltd, have just been distributed at a meeting of the company's board of directors.
The members of the board of directors were desirous of knowing the reason or
reasons why the cash balance different from the net income. 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 directors.
The directors have asked each student from your accounting course to assist
with the needed clarification and have put forward the following financial
information grouped according to your first name initial.
640,000
400,000
(90,000)
(20,000
1,520,000
Auga Company Ltd
Income Statement
Year Ended December 31,2021
Revenues and gains:
Sales revenue
Gain on sale of plant assets 20,000
Total revenues and gains
Expenses
Cost of goods sold
Depreciation expense
Other operating expense
Total expenses
Income before income taxes
Income tax expense
Net Income
1,900,000
1,920,000
850,000
190,000
360,000
1,400.000
520,000
180,000
340,000
Notes
Acquisition of plant asset during 2021
320,000
Sale proceeds from sale of plant asset
Receipt for issuance of notes payable
Payment for note payable
Dividend paid
120,000
10,000
100,000
100,000
100,000
Book value of equipment sold
Transcribed Image Text:Requirements
1. Answer the following questions for the directors:
2. Reconstruct the company's comparative balance sheet for 2020/2021 using
the information in line with your first name initial and compute and show
the missing figures to include the appropriate sign as a positive or negative
figure.
3. Prepare a complete statement of cash flows for 2021 using the indirect
method using the information in line with your first name initial.
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