Diane Maynard's partial account problem.

Q. Diane Maynard's bookkeeper has quit, and she needs to see the balance sheets of her company. Her bookkeeper has left behind a book with the numbers already entered in it. So Diane Maynard has requested her friend to prepare balance sheets for her. Given is the link to the Case study in detail: Maynard Company Case.pdfView in a new window You are required to answer few questions for Maynard by - Preparing the balance sheets as of June 1 and as of June 30, in the proper format. Making comments about how the financial condition as of the end of June compared with that at the beginning of June based on the balance sheet. As of June 30, do you feel that Maynard Company is worth the amount in Shareholder’s Equity, $619,446? Explain Preparing an income statement for June in the proper format. Explain the derivation of each item on this statement, including the cost of sales. In going over the numbers Diane remarked, “It’s sort of surprising that cash increased by $31,677, but net income was only $19,635. Why was that?” Can you explain why the change in the cash balance was greater than the net income? Explain why the following amounts are the incorrect cost of sales amounts for June: (a) $ 14,715 and (b) $36,030. Under what circumstances would these amounts be the correct cost of sales amounts? Answer: