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. () 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 $ 181,000 108,500 626,500 916, ce 389,800 (166, See) $1,130,300 $ 125,700 88.00 543.ee 756,700 316,000 (112, see) $ 960,200 Assets Cash Accounts receivable Inventory Total current assets Equipment Accun depreciation Equipment Total asut Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Constech, per valve Taid-in capital in excess of par value, common stock Metained earning Total liabilities and equity $ 121,000 45, cee 165,000 $ 88,000 33,600 121,600 612,400 225,600 125,300 $1,130,300 585,000 185, See 68,100 $ 960,200 GOLDON CORPORATION I TIT For Current Year Ended December 31 Coat of poods sold $1,872.000 11a $1,877,eee 1,103,000 774,800 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 Other expenses 511,000 Income before taxes Income taxes expense Net income 565,000 209,000 45,800 $ 163,200 Additional Information on Current Year Transactions a. Purchased equipment for $64,800 cash b. Issued 13,700 shares of common stock for $5 cash per share, c. Declared and paid $106,000 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 Net income $ 163,200 Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 54,000 Accounts receivable increase Inventory increase Accounts payable increase Income taxes payable increase 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.) 20 GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income $ 163,200 Adjustments to reconcile net income to not cash provided by operations Depreciation expense 54,000 Accounts receivable increase Inventory increase Accounts payable increase Income taxes payable increase $ 217,200 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment 0 Net cash provided by investing activities Cash flows from financing activities: Cash received from stock issuance Cash paid for cash dividends 0 217.200 $ Not cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 217200
