Below are the comparative Balance Sheets for JME for 20x1 and 20x2, as well as the 20x2 Income Statement.
20x1 20x2
Cash 6,878 8,912
Accounts Receivable 639 980
Inventory 260 427
Prepaid Rent 62 54
Equipment (net) 1,326 1,465
Land 675 2,346
Other LT Assets 253 203
Total Assets 10,093 14,387
Sales 11,358
Cost of Goods Sold 1,085
Gross Profit 10,273
Salary Expense 2,856
Misc Expense 362
Depr Exp - Eq 1,925
Operating Income 5,130
Interest Expense 443
Income Before Tax 4,687
Income Tax 1,233
Net Income 3,454
Accounts Payable 808 721
Salary Payable 202 336
Income Tax Payable 484 466
Unearned Revenue 560 1,718
Other Current Liab 371 369
Mortgage Payable 3,000 2,500
Pref Stock - 100 par -0- 1,000
Common Stock and APIC 2,924 3,333
Retained Earnings 1,744 3,944
Total Liab and Equity 10,093 14,387
Be careful of the subtotals - they are in bold. Watch the order of the years.
REQUIRED: Prepare JME's SCF for 2Ox2. Make sure you prepare the Operations section under BOTH the indirect and direct methods.