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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.
\begin{tabular}{|c|c|c|} \hline \begin{tabular}{c} GOLDEN CORPORATION \\ Comparative Balance Sh \\ December 31 \end{tabular} & Current Year & Prior Year \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline Cash & $184,000 & $129,000 \\ \hline Accounts receivable & 113,000 & 91,000 \\ \hline Inventory & 631,000 & 546,000 \\ \hline Total current assets & 928,000 & 766,000 \\ \hline \begin{tabular}{l} Equipment \\ Accumulated depreciation-Equipment \end{tabular} & \begin{tabular}{l} 388,900 \\ (168,000) \end{tabular} & \begin{tabular}{c} 319,000 \\ (114,000) \end{tabular} \\ \hline Total assets & $1,148,900 & $971,000 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Equity } \\ \hline Accounts payable & $127,000 & $91,000 \\ \hline \begin{tabular}{l} Income taxes payable \\ Total current liabilities \end{tabular} & \begin{tabular}{r} 48,000 \\ 175,990 \end{tabular} & \begin{aligned} 35,100 \\ 126,199\end{aligned} \\ \hline Equity & & \\ \hline Common stock, \$2 par value & 616,000 & 588,000 \\ \hline Paid-in capital in excess of par value, common stock & 232,000 & 190,000 \\ \hline Retained earnings & 125,900 & 66,900 \\ \hline Total liabilities and equity & $1,148,900 & $971,000 \\ \hline \end{tabular} GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income \begin{tabular}{r} $1,892,000 \\ 1,106,000 \\ 786,000 \\ 514,000 \\ 54,000 \\ \hline 218,000 \\ 50,000 \\ \hline$168,000 \\ \hline \hline \end{tabular} Additional Information on Current Year Transactions a. Purchased equipment for $69,900 cash. b. Issued 14,000 shares of common stock for $5 cash per share. c. Declared and paid $109,000 in cash dividends. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 \begin{tabular}{|l|l|l|} \hline Cash flows from investing activities & & \\ \hline & & \\ \hline & & \\ \hline Cash flows from financing activities: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Net increase (decrease) in cash & & \\ \hline Cash balance at December 31, prior year & & \\ \hline Cash balance at December 31, current year & & $ \\ \hline \end{tabular}Step by Step Solution
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