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I need someone to help me preparing a complete statement of cash flow with this information using the indirect method , and then a statement
I need someone to help me preparing a complete statement of cash flow with this information using the indirect method, and then a statement of cash flow for the operating activities only using the direct method
Problem 16-6A Indirect: Statement of cash flows P2 P3 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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets At December 31 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 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Current Year Prior Year $164,000 $107,000 83,000 71,000 601,000 526,000 848,000 704,000 335,000 299,000 (158,000) (104,000) $1,025,000 $899,000 $ 87,000 $ 71,000 28,000 25,000 115,000 96,000 592,000 568,000 196,000 160,000 122,000 75,000 $1,025,000 $899,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,792,000 Cost of goods sold 1,086,000 Gross profit 706,000 Operating expenses (excluding depreciation) 494,000 Depreciation expense 54,000 Income before taxes 158,000 Income taxes expense 22,000 Net income $ 136,000 Additional Information on Current-Year Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 in cash dividends. Required Prepare a complete statement of cash flows using the indirect method for the current yearStep by Step Solution
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