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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Managerial Accounting For Dummies
Authors: Mark P Holtzman, Karen Schoenebeck
1st Edition
1118116429, 978-1118116425
