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Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during 2018 and 2019, respectively. Galderi Manufacturing uses double-declining-balance depreciation. Required a. Record the purchase in a horizontal statements model. b-1.Prepare an income statements for 2018 and 2019. Use a vertical statements format. b-2.Prepare a balance sheets for 2018 and 2019. Use a vertical statements format, b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format. Complete this question by entering your answers in the tabs below. Req A Req B1 Inc Stit Req B2 Bal Sheet Req B3 Stmt Cash Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC). If the element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outnows with a minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount.) Show less GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Income Statement Assets Equity Accumulated Common Retained Revenue - Expense = Net Income + Equipment - Depreciation Stock Earnings Statement of Cash Flows Event Cash | = 150.000 150,000 + (120,000) + 72,000 - 120,000 150,000 CFA 120,000) 18 72,000 OA . | 72.000 - 2018 Issue stock Purchase equipment Revenue Depreciation expense Balance 2019 Beg. bal. Revenue Depreciation expense End. bal. 40,000/= 40.000) = 72.000 (40,000) 32.000 40,000 = 40,000 = 72,000 40,000) 32,000 102,000 + 120,000 - 150 000 - 72.000 - 102,000 NC 120.000 - 40,000 = 150.000 - 102,000 + 83,000+ 83.000 - 83,000 OA 32.000 83.000 (26,667) 88.333 26,667 - 26,667 = 26,667 - 83,000 (26,667) 56,333 185,000 + 120.000 - 66,667 = 150.000 - 83.000 - 83.000 NC Req A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 Stmt Cash Prepare an Income statements for 2018 and 2019. Use a vertical statements format. (Do not round Intermediate calculations. Round the final answers to nearest dollar amount.) GOLDEN MANUFACTURING COMPANY Income Statements 2018 2019 Sales revenue S 72,000 $ 83,000 Depreciation expense 40,000 26,667 $ 32,000 $ 56,333 Net income Net loss Prepare a balance sheets for 2018 and 2019. Use a vertical statements format. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.) 2019 GOLDEN MANUFACTURING COMPANY Balance Sheets 2018 Assets Cash $ 102,000 Equipment 120,000 Less: Accumulated depreciation I (40,000)| Total Assets $ 182,000 Stockholders' equity Common stock $ 150,000 Retained earnings 32,000 $ 185,000 120,000 (66,667) $ 238,333 $ 150,000 88,333 T4 $ 182,000 $ 238,333 Cash Common stock Req B1 Inc Stmt Req B3 Stmt Cash > Equipment Inventory Retained earnings Sales Complete this question by entering your answers in the tabs below. Req A Req B1 Inc Stmt Req B2 Bal Sheet Req B3 Stmt Cash Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format. (Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount.) 2019 S 83,000 GOLDEN MANUFACTURING COMPANY Statements of Cash Flows 2018 Cash flows from operating activities Inflow from customers $ 72,000 Cash flows from investing activities Outflow to purchase equipment (120,000) Cash flows from financing activities Inflow from stock issue 150,000 Net change in cash 102,000 Plus: Beginning cash balance Ending cash balance | $ 102,000 83,000 102,000 185,000 $ Req B2 Bal Sheet Req B3 Stmt Cash >
