1.

Balance Sheet of Maynard Company as of June 1 and as of June 30

Current Liabilities Jun-01 Jun-30

Current Liabilities
Account Payable 8517 21,315
Accured Wages Payable 1,974 2,202
Bank Notes Payable 8,385 29,250
Taxes Payable 5,700 7,224

Total Current liabilities 24,576 59,991

Non current Liabilities

Other non current liabilities 2,451 2,451

Total Non Current Liabilities 2,451 2,451

Shareholder's Equity
Capital Stock 390,000 390,000
Retained earnings 221,511 229,446

Total shareholder's equity 611,511 619,446

Total liabilities and shareholder's equity 638,538 681,888

Assets Jun-01 Jun-30

Current Assets
Accounts receivable 21,798 26,505
Cash 34,983 66,660
Merchandise inventory 29,835 26,520
Note receivable, Diane Maynard 11,700 0
Prepaid insurance 3,150 2,826
Supplies on hand 5,559 6,630

Total Current Assets 107,025 129,141

Non Current Assets

Accumulated depreciatiin on building 1,56,00 157,950
Accumulated depreciatiin on equipment 5,304 5,928
Building 585,000 585,000
Equipment 13,260 36,660
Land 89,700 89,700
Other non current assets 4,857 5,265

Total non current assets 531,513 552,747

Total Asset 638,538 681,888

2. Making comments about how the financial condition as of the end of june compared with that at the beginning of june base

Current Liabilities Jun-01 Jun-30 Change in percentage Assets

Current Liabilities Current Assets
Account Payable 8517 21,315 150 Accounts receivable
Accured Wages Payable 1,974 2,202 11.55 Cash
Bank Notes Payable 8,385 29,250 248.837 Merchandise inventory
Taxes Payable 5,700 7,224 26.736 Note receivable, Diane Mayn
Prepaid insurance
Total Current liabilities 24,576 59,991 144.104 Supplies on hand

Non current Liabilities Total Current Assets

Other non current liabilities 2,451 2,451 0
Non Current Assets
Total Non Current Liabilities 2,451 2,451 0 Accumulated depreciatiin on
Accumulated depreciatiin on
Shareholder's Equity Building
Capital Stock 390,000 390,000 0 Equipment
Retained earnings 221,511 229,446 3.582 Land
Other non current assets
Total shareholder's equity 611,511 619,446 1.297
Total non current assets

Total liabilities and shareholder's equity 638,538 681,888 6.788 Total Asset

Liabilities: Assets:

The percentage of accounts payble has been increased to 150 . The percentage of accounts r
The percentage of accured wages has been increased to 11.55 . The percentage of cash has b
The percentage of bank notes payable has been increased to 248.837 . The prepaid insurance has b
The percentage of taxes payable has been increased to 26.736 . The note receivable has decr
The non current liabilities remains same. The land has been remained
The Capital stock remains same. the depreciation on building
The retained earnings has increased to 3.58 percent the building and land remain
The total liabilities has been increased to 6.788 percent The total assets has been inc

3. The change in the cas balance was greater than the net income because of :

Diane Maynard's observation that the cash balance increased by $31,677 despite a net income of only $19,635 is a significant

Expenses other than cash:

Net income comprises non-cash expenses like as depreciation and amortisation which diminish reported profit but do not resu

Activities of Operation:
Independent of net income the company running activities might generate or use cash.

Activities in Investing and financing:

Investing and financing operations, such as purchasing equipment and incurring debt , can have an influencee on cash that is i
t at the beginning of june based on the balance sheet.

Jun-01 Jun-30 Change in percentage

Current Assets
Accounts receivable 21,798 26,505 21.593
34,983 66,660 20.664
Merchandise inventory 29,835 26,520 -11.111
Note receivable, Diane Maynard 11,700 0 -100
Prepaid insurance 3,150 2,826 -10.285
Supplies on hand 5,559 6,630 19.266

Total Current Assets 107,025 129,141 20.664

Non Current Assets

Accumulated depreciatiin on building 1,56,00 157,950 1.25
Accumulated depreciatiin on equipment 5,304 5,928 11.764
585,000 585,000 0
Equipment 13,260 36,660 176.47
89,700 89,700 0
Other non current assets 4,857 5,265 8.4

Total non current assets 531,513 552,747 3.99

Total Asset 638,538 681,888 6.788

The percentage of accounts receivable has been increased to 21.59 percent

The percentage of cash has been increased to 20.66 percent
The prepaid insurance has been decreased to 10.28 percent
The note receivable has decreased by 100 percent
The land has been remained same
the depreciation on building has increased to 1.25 percent
the building and land remains same
The total assets has been increased to 6.788 percent

of only $19,635 is a significant financial phenomenon.A variety of cash flow and accounting priciples can explain this difference .Below I'II e

reported profit but do not result in actual cash outflows.

an influencee on cash that is independent of net income.
lain this difference .Below I'II explain why the change in cash balance was more than the change in net income.
2. Making comments about how the financial condition as of the end of june compared with that at the beginning of june base

Current Liabilities Jun-01 Jun-30 Change in percentage Assets

Current Liabilities Current Assets
Account Payable 8517 21,315 150 Accounts receivable
Accured Wages Payable 1,974 2,202 11.55 Cash
Bank Notes Payable 8,385 29,250 248.837 Merchandise inventory
Taxes Payable 5,700 7,224 26.736 Note receivable, Diane Mayn
Prepaid insurance
Total Current liabilities 24,576 59,991 144.104 Supplies on hand

Non current Liabilities Total Current Assets

Other non current liabilities 2,451 2,451 0
Non Current Assets
Total Non Current Liabilities 2,451 2,451 0 Accumulated depreciatiin on
Accumulated depreciatiin on
Shareholder's Equity Building
Capital Stock 390,000 390,000 0 Equipment
Retained earnings 221,511 229,446 3.582 Land
Other non current assets
Total shareholder's equity 611,511 619,446 1.297
Total non current assets

Total liabilities and shareholder's equity 638,538 681,888 6.788 Total Asset

Liabilities: Assets:

The percentage of accounts payble has been increased to 150 . The percentage of accounts r
The percentage of accured wages has been increased to 11.55 . The percentage of cash has b
The percentage of bank notes payable has been increased to 248.837 . The prepaid insurance has b
The percentage of taxes payable has been increased to 26.736 . The note receivable has decr
The non current liabilities remains same. The land has been remained
The Capital stock remains same. the depreciation on building
The retained earnings has increased to 3.58 percent the building and land remain
The total liabilities has been increased to 6.788 percent The total assets has been inc
t at the beginning of june based on the balance sheet.

Jun-01 Jun-30 Change in percentage

Current Assets
Accounts receivable 21,798 26,505 21.593
34,983 66,660 20.664
Merchandise inventory 29,835 26,520 -11.111
Note receivable, Diane Maynard 11,700 0 -100
Prepaid insurance 3,150 2,826 -10.285
Supplies on hand 5,559 6,630 19.266

Total Current Assets 107,025 129,141 20.664

Non Current Assets

Accumulated depreciatiin on building 1,56,00 157,950 1.25
Accumulated depreciatiin on equipment 5,304 5,928 11.764
585,000 585,000 0
Equipment 13,260 36,660 176.47
89,700 89,700 0
Other non current assets 4,857 5,265 8.4

Total non current assets 531,513 552,747 3.99

Total Asset 638,538 681,888 6.788

The percentage of accounts receivable has been increased to 21.59 percent

The percentage of cash has been increased to 20.66 percent
The prepaid insurance has been decreased to 10.28 percent
The note receivable has decreased by 100 percent
The land has been remained same
the depreciation on building has increased to 1.25 percent
the building and land remains same
The total assets has been increased to 6.788 percent
3. The change in the cas balance was greater than the net income because of :

Diane Maynard's observation that the cash balance increased by $31,677 despite a net income of only $19,635 is a significant

Expenses other than cash:

Net income comprises non-cash expenses like as depreciation and amortisation which diminish reported profit but do not resu

Activities of Operation:
Independent of net income the company running activities might generate or use cash.

Activities in Investing and financing:

Investing and financing operations, such as purchasing equipment and incurring debt , can have an influencee on cash that is i
of only $19,635 is a significant financial phenomenon.A variety of cash flow and accounting priciples can explain this difference .Below I'II e

reported profit but do not result in actual cash outflows.

an influencee on cash that is independent of net income.

lain this difference .Below I'II explain why the change in cash balance was more than the change in net income.