Maynard Company Case Analysis

853 Words2 Pages

Overall, assets increased at the end of the month compared to the beginning by $43,350. This

results in purchasing more assets, making sales or by simply making payments or purchasing on credit.

1. Cash: There is an increase of cash as of June 30 by $31,677. This could be the result of the company making sales for cash or making purchases on credit which would explain the increase in accounts payable. Also, payments of insurance were credited from prepaid insurance resulting in no cash being removed from the account.

2. Accounts Receivable: There is an increase in accounts receivable as of June 30 by $4,707. This could

be the result of the company making sales on credit.

3. Supplies on hand: There is an increase in supplies on hand as of June 30 by $1,071. This could be the

result of the company having purchased more supplies during the month.

4. Merchandise Inventory: There is a decrease in merchandise inventory as of June 30 by $3,315.The

reason of the decrease would be that the company has made sales during the

month.

5. Prepaid Insurance: There is a decrease in prepaid insurance as of June 30 by $324 because at the end

of the month, a payment of insurance was due resulting in decreasing the prepaid

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