Question
Required information Skip to question [The following information applies to the questions displayed below.] Golden Corporation's current year income statement, comparative balance sheets, and additional
Required information
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[The following information applies to the questions displayed below.]
Golden Corporation'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 CORPORATIONComparative Balance SheetsDecember 31 Current YearPrior YearAssets Cash$ 173,000$ 116,900Accounts receivable96,50080,000Inventory614,500535,000Total current assets884,000731,900Equipment359,200308,000Accumulated depreciationEquipment(162,500)(108,500)Total assets$ 1,080,700$ 931,400Liabilities and Equity Accounts payable$ 105,000$ 80,000Income taxes payable37,00029,600Total current liabilities142,000109,600Equity Common stock, $2 par value602,800577,000Paid-in capital in excess of par value, common stock212,200173,500Retained earnings123,70071,300Total liabilities and equity$ 1,080,700$ 931,400GOLDEN CORPORATIONIncome StatementFor Current Year Ended December 31Sales$ 1,837,000Cost of goods sold1,095,000Gross profit742,000Operating expenses (excluding depreciation)503,000Depreciation expense54,000Income before taxes185,000Income taxes expense34,600Net income$ 150,400Additional Information on Current Year Transactions
- Purchased equipment for $51,200 cash.
- Issued 12,900 shares of common stock for $5 cash per share.
- Declared and paid $98,000 in cash dividends.
Required:
Prepare a complete statement of cash flows using the indirect method for the current year.
Note: Amounts to be deducted should be indicated with a minus sign.
Required: Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign
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