Module 7 Assignment:
Amy's Fashions ended the year 20XX with the following balance:
Amy's Fashions
Comparative Balance Sheet
December 31, 20XX
20XX 20WW Increase (Decrease)
ASSETS
Current Assets:
Cash and cash equivalents 140,350 95,900 44,450
Accounts receivable 95,300 102,300 -7,000
Inventory 165,200 157,900 7,300
Prepaid expenses 6,240 5,860 380
Investments (long term) 35,700 84,700 -49,000
Plant Assets:
Land 75,000 90,000 -15,000
Buildings (net) 303,700 201,700 102,000
Equipment, net 279,800 290,300 -10,500
Patents 58,000 65,000 -7,000
Total Assets 1,159,290 1,093,660 65,630
LIABILITIES
Current Liabilities:
Accounts Payable 43,500 46,700 -3,200
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 paid in capital-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 Liabilities and Stockholders' Equity 1,159,290 1,093,660 65,630
1 Using the direct method, prepare the cash flows from operations for Amy's Fashions for the year ended 20X
Amy's Fashions
Statement of Cash Flows-Direct Method
For the Year Ended 20XX
Amy's Fashions
Comparative Income Statement
For the Year Ended 20XX
Increase (Decrease) 20XX
Revenues:
sales 1,100,000
44,450 Cost of Goods Sold 710,000
-7,000 Gross Profit 390,000
7,300 Operating Expenses:
380 Depreciation 23,500
-49,000 Patent Amortization 7,000
Other operating expenses 196,000
-15,000 Total Operating Expenses: 226,500
102,000 Income from operations 163,500
-10,500 Other Income:
-7,000 Gain on sale of investments 11,000
65,630 Other Expenses:
Interest Expense 26,000 -15,000
Income before income tax 148,500
Income tax expense 50,000
-3,200 Net Income 98,500
1,500 98,500
-500
4,000
0
40,000
-100,000
-58,200
0
75,000
25,000
23,830
123,830
65,630
ashions for the year ended 20XX.
hod
0XX
1,100,000
710,000
390,000
226,500
163,500
-15,000
148,500
50,000
98,500
98,500