Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all

4. Golden Corporation'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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.

GOLDEN CORPORATION
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $ 176,000 $ 120,200
Accounts receivable 101,000 83,000
Inventory 619,000 538,000
Total current assets 896,000 741,200
Equipment 367,300 311,000
Accumulated depreciationEquipment (164,000) (110,000)
Total assets $ 1,099,300 $ 942,200
Liabilities and Equity
Accounts payable $ 111,000 $ 83,000
Income taxes payable 40,000 31,100
Total current liabilities 151,000 114,100
Equity
Common stock, $2 par value 606,400 580,000
Paid-in capital in excess of par value, common stock 217,600 178,000
Retained earnings 124,300 70,100
Total liabilities and equity $ 1,099,300 $ 942,200

GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales $ 1,852,000
Cost of goods sold 1,098,000
Gross profit 754,000
Operating expenses (excluding depreciation) 506,000
Depreciation expense 54,000
Income before taxes 194,000
Income taxes expense 38,800
Net income $ 155,200

Additional Information on Current Year Transactions

  1. Purchased equipment for $56,300 cash.
  2. Issued 13,200 shares of common stock for $5 cash per share.
  3. Declared and paid $101,000 in cash dividends.

4A. 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.)

4B. Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts as positive values.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Economics And Financing

Authors: Thomas E. Getzen, Michael S. Kobernick

6th Edition

1119815681, 9781119815686

More Books

Students also viewed these Accounting questions

Question

What are the advantages of financing through the sale of stock?

Answered: 1 week ago

Question

List the five steps in the message-sending process.

Answered: 1 week ago

Question

List and explain the four steps in the communication process.

Answered: 1 week ago

Question

Describe how communication flows through organizations.

Answered: 1 week ago