please explain how to get answer
Golden Manufacturing Company started operations by acquiring $95,000 cash from the issue of common stock On January 1, Year 1, the company purchased equipment that cost $85,000 cash, had an expected useful life of five years, and had an estimated salvage value of $8,500 Golden Manufacturing earned $88,000 and $62,300 of cash revenue during Year 1 and Year 2 respectively. Golden Manufacturing uses double declining balance depreciation Required a. Record the above transactions in a horizontal statements model. b-1. Prepare Income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2 Steg Reg Bl Inc Sen Red B2 Bol Sheet Regst Cash Record the above transactions in a horizontal statements model in the cash flow column, indicate whether the item is an operating activity (OA), an investigactivity (TA), finan activity (FA) and not change in cash (NC). If the element is not affected by the event, leave the cell blonk Enter any decreases to account balances and cash outflows with a miss not found intermediate calculations. Round the final answers to est dollar amount. Not all col will require entry) Show Income Statement GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Astets Equity BV Common Retained Revenue Equipment Stoch Earnings Statement of Cash Flows Net Income Expense Evet Cash O 95.000 95.000 (05.000) 30,000 05.000 O 03 35.000 00 0 95.000 0 0 00 000 . 88000 0 DOO OC B01 000 0 0 0 0 38.000 03 50.000 Year 1 issue stock Purchase equipment Rovence | Deproton expono Balance Yar 2 Bog bol Raven Depreciation expenso Endbal 95.000 (5000) 0000010 U 90.000 ING 00.000 O 38 000 02100 8.000 02300 08,000 82300 O. 160 300 35.000 0 03 85,000 95.000 oo 0 95,000 0 0 03 0 0 02.300 OX 02.300 02.300 IOA OC 62.300 INC 150,300 150 300 > Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Req B1 Inc Req B2 Bal Reg B3 Stmt Stimt Sheet Cash Prepare income statements for Year 1 and Year 2. (Do not round Intermediate calculations. Round the final answers to nearest dollar amount.) GOLDEN MANUFACTURING COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 Sales revenue Depreciation expense Not income OOO Req A Reg B1 Inc Stmt Req B2 Bal Sheet Reg B3 Stmt Cash Prepare balance sheets for Year 1 and Year 2. (Do not round Intermediate calculations. Round the final answers to nearest dollar amount) Year 2 GOLDEN MANUFACTURING COMPANY Balance Sheets As of December 31 Year 1 Assets Cash Equipment Less Accumulated depreciation Total Assets $ 0 Stockholders' equity Common stock Retained earnings $ 0 Total stockholders' oquity $ 0 0 Reg A Req B1 Inc Stmt Req B2 Bal Sheet Reg B3 Stmt Cash Prepare statements of cash flows for Year 1 and Year 2. (Cash outflows should be indicated with a minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount) GOLDEN MANUFACTURING COMPANY Statements of Cash Flows For the Year Ended December 31 Year 1 Year 2 Cash flows from operating activities inflow from customers Cash flows from investing activities Outflow to purchase equipment Cash flows from financing activities Inflow from stock issue Net change in cash Plus Beginning cash balance Ending cash balance 0 0
