amy s fashions ended the year 2012 with the following balance 595711

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


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
	Accounts Receivable	102,300		7,000		95,300
	Prepaid Insurance	5,860			380	6,240
	Accounts Payable	46,700		3,200		43,500
	Income Tax Payable	8,400			500	7,900
	Dividends Payable	10,000		4,000		14,000
	Bonds Payable	150,000		100,000		250,000

			Debit		Credit
	Net Income		98,500
	Increase in Accounts Receivable				7,000
	Decrease in Prepaid Insurance		380
	Decrease in Accounts Payable				3,200
	Increase in Salary Payable		10,000
	Add: Depreciation
	Subtract Gain

	Subtract Debits from Credits

	Net Cash Provided by Operations





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

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