! Required Information [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 $ 184,80 113,000 631,000 928, eee 388,900 (168,00) $1,148,980 $ 129, eee 91,000 546,000 766,080 319, eee (114,00) $ 971,00 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 127, eee 48,000 175, eee $ 91, eee 35,180 126,180 616,80 232,000 125,900 $1,148,989 588, eee 199,000 66,989 $ 971, eee $1,892,80 1,106, eee 786, eee GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54, eee Other expenses 514,000 Income before taxes Income taxes expense Net income 568,280 218,eee 50, eee 168,000 $ Additional Information on Current Year Transactions a. Purchased equipment for $69,900 cash. b. Issued 14,000 shares of common stock for $5 cash per share. c. Declared and paid $109,000 in cash dividends. Additional Information on Current Year Transactions a. Purchased equipment for $69.900 cash. b. Issued 14,000 shares of common stock for $5 cash per share. c. Declared and paid $109,000 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 Indicated 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: s 0 Cash flows from investing activities 0 Cash flows from financing activities: 0 s 0 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year s 0 Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts as positive values.) GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Debit Credit Year December 31, Current Year Balance sheet-debit balance accounts Cash s 129.000 s 184,000 91,000 Accounts receivable Inventory Equipment 546,000 319,000 1.085.000 $ $ 184.000 s Balance sheet-credit balance accounts Accumulated depreciation-Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 114,000 91,000 35,100 588.000 190.000 66.900 s 1.085.000 s 0 Statement of cash flows Operating activities Investing activities Financing activities $ 0 S 0
