Module 07 Accounting Assignment - Indirect Method

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M7 Assignment

Module 7 Assignment:
Amy's Fashions ended the year 2012 with the following balance:
Amy's Fashions Amy's Fashions
Comparative Balance Sheet Comparative Income Statement
December 31, 20XX For the Year Ended 2012
2012 2011 Increase (Decrease) 2012
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 operating expenses 196,000
Land 75,000 90,000 -15,000 Total Operating Expenses: 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 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
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
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 2012.
Amy's Fashions
Statement of Cash Flows-Indirect Method
For the Year Ended 2012