MC TRAVEL INC. Balance Sheet December 31, $ Restated 2020 Restated 2019 Change ASSETS-Current assets Cash Temporary investments Accounts receivable Allowance for doubtful accounts Total current assets 7,600,000 2,006,000 5,000,000 -200,000 14,406,000 5,040,000 1,900,000 3,700,000 -100,500 10,539,500 2,560,000 106,000 1,300,000 -99,500 3,866,500 Capital assets Land Building and equipment Accumulated depreciation Total capital assets 40,250,000 40,270,000 -5,175,000 75,345,000 15,250,000 40,072,000 -3,450,000 51,872,000 25,000,000 198,000 -1,725,000 23,473,000 Total assets 89,751,000 62,411,500 27,339,500 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Interest payable Income taxes payable Dividents payable Total current liabilities 3,800,800 30,000 1,025,000 0 4,855,800 4,100,750 15,000 700,000 100,000 4,915,750 -299,950 15,000 325,000 -100,000 -59,950 338,000 Long term liabilities Long term bank loan Bond payable Future income tax liability Total long term liabilities 0 1,145,000 40,000,000 175,000 41,320,000 807,000 40,000,000 150,000 40,957,000 25,000 363,000 Total liabilities 46,175,800 45,872,750 303,050 Shareholders' equity Common shares 26,000,000 1,000,000 Retained earnings Total shareholders' equity 17,575,200 43,575,200 15,538,750 16,538,750 25,000,00 0 2,036,450 27,036,45 0 Total liabilities and shareholders' equity 89,751,000 62,411,500 27,339,50 0 Difference : Assets - (Liabilities + Shareholders' equity) 0 0 0 Restated MC TRAVEL INC. Income Statement For The Year Ended December 31, 2020, $ 2020 37,500,000 Sales Expenses: Salaries and wages Purchases from tour operators Depreciation expense Office, general, and selling expenses Bad debt expenses Interest on long-term debt Bond interest expense Total expenses 5,000,000 22,500,000 1,750,000 3,489,800 150,000 30,000 2,000,000 34,919,800 Income before other income and expenses Investment income Gain on sale of equipment Income before income taxes Income tax expense Net income Difference: Debits - Credits 2,580,200 256,000 73,000 2,909,200 872,750 2,036,450 MC TRAVEL INC. Statement of Cash Flows For The Year Ended December 31, 2020, $ Net income Depreciation expense Doubtful receivables written off Bad debt expense Change in accounts receivable Change in temporary investments Change in accounts payable Change in interest payable Change in income tax payable Gain on sale of equipment Change in future income tax liability Cash flow from operating activities New equipment purchased old equipment sold Cash flow from investing activities -250,000 100,000 Change in dividends payable Change in LT bank loan Cash flow from financing activities Total cash increase/(decrease) Beginning cash balance Cash increase/(decrease) Ending cash balance Ending cash balance - balance sheet