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

Question

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

Explanation / Answer

statement of a company's assets, liabilities, and stockholder equity at a given period of time, such as the end of a quarter or year. A balance sheet is a record of what a company has and how it has come to have it. A balance sheet is divided into two main sections, one that records assets and one that records liabilities and stockholder equity. The assets should generally equal the liabilities and stockholder equity because the latter two are how the company paid for its assets. Examples of items recorded as assets include accounts receivable and property, plants, and equipment. Examples of liabilities include accounts payable and long-term bonds

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