The following income statement and additional year-end Information is provided. $2,230,000 1,005,620 1,141,0 KOMAD COMPANY Ineone Statement For Year Ended December 11 Sales Coat of goods sold Gross profit Operating expenses Salaries expense $306, 606 Depreciation expense 53,712 Hent expense 60,426 Amortization expenses-Patents 6.714 utilities exponse 24.618 Gain on sale of equipment Net income 452016 68,104 $698,256 Accounts receivable Inventory 543,900 Increase 39,700 Increase Accounts payable Salaries payable $12,075 decrease 2.500 decrease Prepare the operating activities section of the statement of cash flows using the indirect method (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Net income $ 698,256 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 53,7121 Amortization expenso-Patents 6,714 Changes in current operating assets and liabilities increase in accounts payable Increase in inventory Decrease in salaries payable Increase in accounts receivable (306,606) $ 452,076 Net cash provided by operating activities Required information Use the following information for the Problems below. [The following information applies to the questions displayed below.) Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory. (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes, GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Current Year $ 184,000 113,000 631,000 928,000 388,900 (168,000). $1,148,900 Prior Year $ 129,000 91,000 546,000 766,000 319,000 114,000 $971.000 $ $ 127,000 48,000 175,000 91,000 35, 100 126, 100 616,000 232,000 125,900 $1,148,900 588,000 190,000 66,900 $ 971.000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,892,000 Cost of goods sold 1,106,000 Gross profit 786,000 Operating expenses Depreciation expense $ 54,000 Other expenses 514,000 568,000 Income before taxes 218,000 Income taxes expense 50,000 Net income $ 168,000 Additional Information on Current Year Transactions a. Purchased equipment for $69,900 cash. b. Issued 14,000 shares of common stock for $5 cash per share, c. Declared and paid $109.000 in cash dividends. Problem 12-6A Indirect: Statement of cash flows LO P2, P3 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be Indicated with a minus sign) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation expense $ 0 Cash flows from investing activities 0 Cash flows from financing activities Cash received from stock issuance Cash paid for cash dividends 0 O $ $ 0 Net increase (decrease in cash Cash balance at December 31, peior year Cash balance at December 31, current year
