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

 

Amy's Fashions Amy's Fashions

Comparative Balance Sheet Comparative Income Statement

December 31, 20XX For the Year Ended 20XX

20XX 20WW Increase (Decrease) 20XX

ASSETS Revenues:

Current Assets: sales 1,100,000

Cash and cash equivalents 140,350 95,900 44,450 Cost of Goods Sold 710,000

Accounts receivable 95,300 102,300 -7,000 Gross Profit 390,000

Inventory 165,200 157,900 7,300 Operating Expenses:

Prepaid expenses 6,240 5,860 380 Depreciation 23,500

Investments (long term) 35,700 84,700 -49,000 Patent Amortization 7,000

Plant Assets: Other op expenses 196,000

Land 75,000 90,000 -15,000 Total OpExpenses: 226,500

Buildings (net) 303,700 201,700 102,000 Income from operations 163,500

Equipment, net 279,800 290,300 -10,500 Other Income:

Patents 58,000 65,000 -7,000 Gain sale of inv 11,000

Total Assets 1,159,290 1,093,660 65,630 Other Expenses:

Interest Expense 26000 -15,000

LIABILITIES Income before income tax 148,500

Current Liabilities: Income tax expense 50,000

Accounts Payable 43,500 46,700 -3,200 Net Income 98,500

Accrued Liabilities 14,000 12,500 1,500

Income Taxes Payable 7,900 8,400 -500

Dividends Payable 14,000 10,000 4,000

Long Term Liabilities: 0

Mortgage note payable 40,000 40,000

Bonds Payable 150,000 250,000 -100,000

Total Liabilities 269,400 327,600 -58,200

 

STOCKHOLDER'S EQUITY 0

Common Stock 450,000 375,000 75,000

Additional pd capt-common 66,250 41,250 25,000

Retained Earnings 373,640 349,810 23,830

Total Stockholders' Equity 889,890 766,060 123,830

Total Liab & StkHdrs' Equity 1,159,290 1,093,660 65,630

 

 

An examination of the accounting records revealed the following for 2010:

Land costing $15,000 was sold for $15,000

A mortgage note was issued for $40,000

A building costing $115,000 was constructed

2,500 shares of common stock were issued at 40 in exchange for the bonds payable

Cash dividends declared were $74,670

 

 

1 Use the worksheet to calculate changes in Current Assets and Liabilities:

Account Beginning Balance Debit Credit Ending Balance

 

 

 

 

 

 

 

Debit Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 Using the indirect method, prepare the statement of cash flows for Amy's Fashions for the year ended 20XX.

Amy's Fashions

Statement of Cash Flows-Indirect Method

For the Year Ended 20XX