Question
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
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 | $ 166,000 | $ 109,200 |
Accounts receivable | 86,000 | 73,000 |
Inventory | 604,000 | 528,000 |
Total current assets | 856,000 | 710,200 |
Equipment | 340,300 | 301,000 |
Accumulated depreciationEquipment | (159,000) | (105,000) |
Total assets | $ 1,037,300 | $ 906,200 |
Liabilities and Equity | ||
Accounts payable | $ 91,000 | $ 73,000 |
Income taxes payable | 30,000 | 26,100 |
Total current liabilities | 121,000 | 99,100 |
Equity | ||
Common stock, $2 par value | 594,400 | 570,000 |
Paid-in capital in excess of par value, common stock | 199,600 | 163,000 |
Retained earnings | 122,300 | 74,100 |
Total liabilities and equity | $ 1,037,300 | $ 906,200 |
GOLDEN CORPORATION | |
Income Statement | |
For Current Year Ended December 31 | |
Sales | $ 1,802,000 |
---|---|
Cost of goods sold | 1,088,000 |
Gross profit | 714,000 |
Operating expenses (excluding depreciation) | 496,000 |
Depreciation expense | 54,000 |
Income before taxes | 164,000 |
Income taxes expense | 24,800 |
Net income | $ 139,200 |
Additional Information on Current Year Transactions
- Purchased equipment for $39,300 cash.
- Issued 12,200 shares of common stock for $5 cash per share.
- Declared and paid $91,000 in cash dividends.
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.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started