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

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

 20XX20WWIncrease (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 receivable95,300   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 operating expenses  196,000 

Land                     75,000      90,000    -15,000          Total Operating Expenses:                       226,500

Buildings (net)     303,700201,700102,000                       Income from operations    163,500

Equipment, net      279,800290,300-10,500                     Other Income: 

Patents      58,000     65,000    -7,000                                           Gain on sale of investments   11,000 

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

                                                                                     Interest Expense               26,000   -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                                                                          98,500

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 EQUITY0 

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 

     

 Requirement: 

 

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