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, XXXXXXXXXXDepreciation 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 XXXXXXXXXX,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, XXXXXXXXXX
Dividends Payable 14,000 10,000 4,000
Long Term Liabilities: 0
Mortgage note payable 40,000 40,000
Bonds Payable 150,000 250, XXXXXXXXXX,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