A Fabulous Affair has used the following assumptions in the preparation of its financial statements.  All calculation methods adhere to Generally Accepted Accounting Principles.

>  The method of inventory valuation was used on a last-in, first-out basis.

>  The cash method of accounting was used.

>  A straight line depreciation formula was used.

>  A 12% annualized rate of interest was assumed for accounts payable and accounts receivable unless otherwise noted.