Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prior Year $ Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.] Golden Corp.'s current year

image text in transcribedimage text in transcribedimage text in transcribed

Prior Year $ Use the following information for the Problems below. (Algo) [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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Assets Cash 179,000 $ 123,500 Accounts receivable 105,500 86,000 Inventory 623,500 541,000 Total current assets 908,000 750,500 Equipment 375,400 314,000 Accum. depreciation-Equipment (165,500) (111,500) Total assets $1,117,900 $ 953,000 Liabilities and Equity Accounts payable $ 117,000 86,000 Income taxes payable 43,000 32,600 Total current liabilities 160,000 118,600 Equity Common stock, $2 par value 610,000 583,000 Paid-in capital in excess of par value, common stock 223,000 182,500 Retained earnings 124,900 68,900 Total liabilities and equity $1,117,900 $ 953,000 $ GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $1,867,000 1,101,000 766,000 509,000 54,000 203,000 43,000 $ 160,000 Additional Information on Current Year Transactions a. Purchased equipment for $61,400 cash. b. Issued 13,500 shares of common stock for $5 cash per share. c. Declared and paid $104,000 in cash dividends. 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: Income statement items not affecting cash Changes in current assets and current liabilities $ 0 Cash flows from investing activities 0 Cash flows from financing activities: 0 $ 0 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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

3rd Edition

0136946690, 978-0136946694

More Books

Students also viewed these Accounting questions

Question

What perspective or approach to talent would be appropriate?

Answered: 1 week ago

Question

What policies and practices for talent development are needed now?

Answered: 1 week ago