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 reflect 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 reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Emaitu $ 165,000 84,500 602,500 852,000 337,600 (158,500) $1,031, 100 $ 108, 109 72,000 527,000 707,100 300,000 ( 104,500) $ 902,600 $ 89,000 29,000 118,000 $ 72,000 25,600 97,600 Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 593,280 197,800 122,100 $1,031,100 569,000 161,500 74,500 $ 902,600 $1,797,000 1,087,000 710,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 Other expenses 495,000 Income before taxes Income taxes expense Net income 549,000 161,000 23,400 $ 137,600 Additional Information on Current Year Transactions a. Purchased equipment for $37,600 cash. b. Issued 12,100 shares of common stock for $5 cash per share. c. Declared and paid $90,000 in cash dividends. Answer is not complete. GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Debit Credit Prior Year December 31, Current Year $ Is 165,000 Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment 12,500 108,100 72.000 527,000 300,000 1,007,100 84,500 602,500 75,500 37,600 337,600 S $ 1.189,600 Balance sheet-credit balance accounts Accumulated depreciation-Equipment Accounts payable $ 104,500 $ 54,000 IS 72,000 158,500 89.000 17.000 Prey CD 5 Next Required information 3,400 29,000 25,600 569,000 Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 161,500 74,500 1,007,100 s IS 276,500 Statement of cash flows Operating activities Increase in accounts receivable Increase in Inventory Increase in accounts payable Increase in income tax payable Depreciation expense 12,500 75,500 17.000 3,400 54000 Investing activities Pavmant for enuinment 37 600 InnnA in inunn 1 Required information Increase Come tax payable > 3,400 Depreciation expense 54,000 Investing activities Payment for equipment 37,600 Financing activities Issued common stock for cash Paid cash dividends 60,500 90,000 $ 260,500 $ 290,000
