Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below.) Golden Corporation's current year income statement, comparative

image text in transcribed
image text in transcribed
Use the following information for the Problems below. (Algo) [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 $ 170,000 92,000 610,000 872,000 351, 100 (161,000) $ 1,062,100 $ 113,600 77,000 532,000 722,600 305,000 (107.000) $ 920,600 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated 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 $ 99,000 34,000 133,000 $ 77,000 28, 100 105, 100 599,200 206,800 123, 100 $ 1,062, 100 574,000 169,000 72,500 $ 920,600 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cont of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,822,000 1,092,000 730,000 500,000 54,000 176,000 30,400 $ 145,600 Additional Information on Current Year Transactions a. Purchased equipment for $46,100 cash. b. Issued 12,600 shares of common stock for $5 cash per share. c. Declared and paid $95,000 in cash dividends. Problem 16-8AB (Algo) Direct: Statement of cash flows LO P5 Required: Prepare a complete statement of cash flows using the direct 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 0 Cash flows from investing activities 0 Cash flows from financing activities $ Net Increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Accounting Cases Investigating Issues Of Fraud And Professional Ethics

Authors: Jay Thibodeau, Deborah Freier

3rd Edition

0078110815, 9780078110818

More Books

Students also viewed these Accounting questions