Titany Lane Usita Corporation had the following information available at the end of $20$X$2$:

This Examination Has Been Prepared by the House of Tinuin and Subject lo Copy Right Laws, Unauthorized Copying, Downloading, Distribion

or Transmission is Strictly Prohibiled!

Tiffany Lane Usita Corporation

Income statement Li

For the Year ended December $31,20$X$2$

Sales

Cost of Goods Sold

$ $2,318,496$

$1,495,830$

$

$822,666$

Gross Margin

Operating Expenses

Selling Expenses

Administrative Expenses

Amortization Expense

Total Operating Expenses

$$158,400$

$313,400$

$141,000$

$612,800$

Total Operating Expenses

Other Revenues & Expenses:

Gain on Sale of Fixed Assets

Dividend Revenue

Interest Expense

$ $209,866$

$

$84,000$

$12,800$

$(103\mathrm{.}500)$

$(6\mathrm{.}700).$

Earnings before Income tax

income tax expense

$203,166$

$79\mathrm{.}066$

Net Income

$125,100$

Additional Information:

Tiffany Lane Usita Corporation purchased fixed assets costing $$312,000$ during $20$X$2.$

This Examination Has Been Prepared by the House of Tirrujin and Subject $1$o Copy Right Laws. Unauthorized Copying, Downloading, Desirbution

or Transmission iStrictly Prohibited!

Tiffany Lane Usita Corporation

Comparative Balance Sheet

As at December $31,29$X$2$ & $20$X$1$

Asset

$20$X$2$

$20$X$1$

Cash

$70,000$

$68,000$

Accounts Receivable

$29,000$

$25,900$

Inventory

$84,000$

$70,000$

Prepaid Rent

$6,000$

$24,000$

Prepaid Insurance

$4,200$

$1,800$

Office Supplies

$2,000$

$1,500$

Fixed Assets

$2,006,000$

$1,850,000$

Accu. Amort

$470,000)$

$399,000)$

Patent

$90,000$

$100,000$

Total Assets

$1,821,200$

$$

$1,742,200$

Accounts Payable

$

$74,000$

$

$84,000$

Taxes Payable

$10,000$

$8,000$

Taxes Payable

$7,000$

$6,000$

Bonds payable

$920,000$

$940,000$Premium on Bonds

$40,606$

$51,706$

Common Shares

$523,000$

$475,000$

Retained Earnings

$246,594$

$177\mathrm{.}494$

Total Liabilities & Shareholder's Equity

$1,821,200$

$1,742,200$Required:

This Examination Has Been Prepared by the House of Timujin and Subject to Copy Right Laws, Unauthorized Gopying, Downloading, Distribulion

ar Iransmussion w Slncily Prahibied$$

$1.$ Complete the statement of changes of financial position using the indirect method

$2.$ Reconcile the cash inflows and outflows from operations using the direct method