Amy's Fashions ended the year 20XX with the following balance:

Amy's FashionsAmy's Fashions

Comparative Balance SheetComparative Income Statement

December 31, 20XXFor the Year Ended 20XX

20XX20WWIncrease (Decrease)20XX

ASSETSRevenues:

Current Assets:sales1,100,000

Cash and cash equivalents140,35095,90044,450Cost of Goods Sold710,000

Accounts receivable95,300102,300-7,000Gross Profit390,000

Inventory165,200157,9007,300Operating Expenses:

Prepaid expenses6,2405,860380 Depreciation23,500

Investments (long term)35,70084,700-49,000 Patent Amortization7,000

Plant Assets: Other operating expenses196,000

Land75,00090,000-15,000 Total Operating Expenses:226,500

Buildings (net)303,700201,700102,000Income from operations163,500

Equipment, net279,800290,300-10,500Other Income:

Patents58,00065,000-7,000 Gain on sale of investments11,000

Total Assets1,159,2901,093,66065,630Other Expenses:

Interest Expense26,000-15,000

LIABILITIESIncome before income tax148,500

Current Liabilities:Income tax expense50,000

Accounts Payable43,50046,700-3,200Net Income98,500

Accrued Liabilities14,00012,5001,50098,500

Income Taxes Payable7,9008,400-500

Dividends Payable14,00010,0004,000

Long Term Liabilities:0

Mortgage note payable40,00040,000

Bonds Payable150,000250,000-100,000

Total Liabilities269,400327,600-58,200

STOCKHOLDER'S EQUITY0

Common Stock450,000375,00075,000

Additional paid in capital-common66,25041,25025,000

Retained Earnings373,640349,81023,830

Total Stockholders' Equity889,890766,060123,830

Total Liabilities and Stockholders' Equity1,159,2901,093,66065,630

Requirement:

1. Using the direct method, prepare the cash flows from operations for Amy's Fashions for the year ended 20XX.