Required information [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 CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 126,800 Accounts receivable $ 182,000 110,000 89,000 Inventory 628,000 544,000 Total current assets 920,000 759,800 Equipment 383,500 317,000 Accumulated depreciation-Equipment (167,000) (113,000) Total assets $1,136,500 Liabilities and Equity Accounts payable $ 123,000 Income taxes payable 45,000 Total current liabilities 169,000 Equity Common stock, $2 par value 613,600 Paid-in capital in excess of par value, common stock Retained earnings 228,400 125,500 Total liabilities and equity $ 1,136,500 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 Additional Informatias $1,882,000 1,104,000 778,000 $12,000 54,000 212,000 47,200 $164,800 $963,800 $ 89,000 34,100 123,100 586,000 187,000 67,700 $963,000 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: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 December 31, Prior Year $ 126,800 89,000 544,000 317,000 1,076.800 113.000 80,000 34.100 580.000 187.000 67.700 1,076,000 Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment 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 Statement of cash flows Operating activities Investing activities Financing activities $ $ S Analysis of Changes Debit Credit December 31, Current Year 182,000 GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year
