Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help on the problem listed below Use the following information for the Problems below. [The following information applies to the questions displayed below.] Golden

Need help on the problem listed below

image text in transcribedimage text in transcribed
Use the following information for the Problems below. [The following information applies to the questions displayed below.] 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 $ 169,900 $ 112, 500 Accounts receivable 90, 500 76,900 Inventory 608, 500 531, 000 Total current assets 868, 000 719,500 Equipment 348, 400 304, 000 Accum. depreciation-Equipment (160, 500) (106,500) Total assets $1, 055, 900 $ 917, 000 Liabilities and Equity Accounts payable $ 97, 900 $ 76,000 Income taxes payable 33,000 27, 600 Total current liabilities 130, 090 103, 600 Equity Common stock, $2 par value 598, 000 573, 000 Paid-in capital in excess of par value, common stock 205, 900 167,500 Retained earnings 122, 900 72,900 Total liabilities and equity $1, 055, 900 $ 917, 000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1, 817, 000 Cost of goods sold 1, 091, 900 Gross profit 726,000 Operating expenses Depreciation expense $ 54, 000 Other expenses 499, 000 553, 000 Income before taxes 173, 090 Income taxes expense 29, 000 Net income 144, 000 Additional Information on Current Year Transactions a. Purchased equipment for $44,400 cash. b. Issued 12,500 shares of common stock for $5 cash per share. c. Declared and paid $94,000 in cash dividends.Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be ndicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: William K. Carter

14th edition

759338094, 978-0759338098

Students also viewed these Accounting questions