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 $ 171,000 93,500 611,500 876,000 353,800 (161,500) $1,068,300 $ 114,700 78,000 533.000 725,700 306,000 (1e7,500) $ 924,280 Assets Cash Accounts receivable Inventory Total current assets Equipment Accun. 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, connon stock Retained earnings Total liabilities and equity $ 101,000 35,000 136,000 $ 78,000 28,600 106,600 600, 400 208,600 123,300 $1,068,300 575,000 170,500 72,100 $ 924,200 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,827,000 Cost of goods sold 1,093,000 Gross profit 734,000 Operating expenses Depreciation expense $ 54,000 Other expenses 501,000 555,000 Income before taxes 179,000 TRAVE nonco 21 QAD Prev CO 1 2 of 2 : Next > Chec 1 of 2 GOLDEN CORPORATION Incone Statement For Current Year Ended December 31 Sales $1,827,000 Cost of goods sold 1,093,000 Gross profit 1734,000 Operating expenses Depreciation expense $ 54,000 Other expenses 581.000 555,000 Incone before taxes 179,000 Income taxes expense 31,800 Net incone $ 147,200 oped Additional Information on Current Year Transactions a, Purchased equipment for $47,800 cash. b. Issued 12,700 shares of common stock for $5 cash per share. c. Declared and paid $96,000 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.) int 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 1 Required information WILOW WITH SI Part 12 GOLDEN CORPORATION Statement of Cash Flows For Current Your Ended December 31 Cash flows from operating activities 10 Adjustments to reconcile net incerto net cash provided by operations: $ 0 D Cash flow from Westing activities Hurent Cathow from reconoci 3 Net increase (create Cash balance at Decemberor year Cash balance, current year 5 c. Declared and paid $96,000 in cash dividends. Required: Prepare a complete statement of cash flows using the direct method for the current year. (Amounts to be deducted shou indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities $ 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 $ 0
