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need help making a statemtent of cash flows. Golden Corp., a merchandiser, recently completed its 2015 operations. For the year, (1) all sales are credit
need help making a statemtent of cash flows.
Golden Corp., a merchandiser, recently completed its 2015 operations. 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. The company's balance sheets and income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2015 and 2014 Assets Account able $ 230 000 $ 168,000 101.000 82.000 637 000 Total current assets Euipment 315.000 Acoum depreciation Equipment $1.161 000 $1,007,000 Liabilities and Equity Accounts payable Income taxes payable $ 100 000 $ 89000 Total Qurb es 155.000 112.000 Common stock. 52 par value Paid in capital in excess of par value, common stock Retained earnings 214.000 154000 178.000 93,000 Total abilities and equity $1.161.000 $1,007,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold S 1200 TT.000 Gross profit Operating expenses Depreciation expense Other expenses $57.000 512.000 income before taxes Income taxes expense Net income Additional Information on Year 2015 Transactions a. Purchased equipment for $47,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $102,000 in cash dividends. Required: Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Step by Step Solution
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