Question
1.Gold Company's comparative balance sheet and income statement for last year appear below: Statement of Financial Position Ending Beginning Balance Balance Cash........................................................... $70,000 $38,000 Accounts
1.Gold Company's comparative balance sheet and income statement for last year appear below:
Statement of Financial Position
Ending
Beginning
Balance
Balance
Cash...........................................................
$70,000
$38,000
Accounts receivable..................................
76,000
52,000
Inventory....................................................
24,000
42,000
Prepaid expenses.......................................
8,000
16,000
Long-term investments..............................
260,000
210,000
Plant and equipment..................................
530,000
510,000
Accumulated depreciation.........................
(398,000)
(350,000)
Total assets................................................
$570,000
$518,000
Accounts payable.......................................
$32,000
$54,000
Accrued liabilities......................................
34,000
25,000
Taxes payable............................................
4,000
11,000
Bonds payable...........................................
160,000
200,000
Deferred taxes............................................
38,000
25,000
Common stock...........................................
150,000
120,000
Retained earnings......................................
152,000
83,000
Total liabilities and owners' equity...........
$570,000
$518,000
Income Statement
Sales...........................................................
$610,000
Cost of goods sold.....................................
310,000
Gross margin.............................................
300,000
Selling and administrative expense...........
190,000
Net operating income................................
110,000
Income taxes..............................................
33,000
Net income.................................................
$77,000
The company declared and paid $8,000 in cash dividends during the year.
Required:
Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method.
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
