Chapter 12 #5

References Required information Use the following information for the Problems below. [The following information applies to the questions displayed below. J Check my work 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 reect 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 reects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciationEquipment 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 GOLDEN CORPORAIION Income Statement For Current Year Ended December 31 Sales $1,862,000 Cost of goods sold 1,100,000 Gross profit 762,000 Operating expenses Depreciation expense Other expenses Income before taxes 200,000 Income taxes expense 41,600 Net income 5 150,400 $ 54,000 504,000 562,000 Additional Information on Current Year Transactions a. Purchased equipment for $59,700 cash. b. Issued 13,400 shares of common stock for $5 cash per share. c. Declared and paid $103,000 in cash dividends. Problem 12-6A Indirect: Statement of cash flows LO P2. P3 Current Year 5 173,000 104,000 622,000 904,000 372,700 (165,000) $1,111,700 5 115,000 42,000 157,000 603,300 221,200 124,700 $1,111,700 Prior Year 5 122,400 05,000 540,000 747,400 313,000 (111,000) 5 949,400 $ 85,000 32,100 117,100 502,000 101,000 69,300 5 949,400 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 Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year