Use the following information for the Problems below. 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 $ 168,000 89,000 607,000 864,000 345, 700 (160,000) $1,049,700 $ 111,400 75,000 530,000 716,400 303,000 (106,000) $913,400 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, 52 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ $ 95,000 32,000 127,000 75,000 27.100 102,100 596,800 203, 200 122,700 $1,049,700 572,000 166, noe 73,300 $ 913, 400 GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 168,000 89,000 607,000 864,000 345,700 (160,000) $1,049,700 $ 111,400 75,000 530,000 716,400 303,800 106,000) $ 913,400 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, common stock Retained earnings Total liabilities and equity $ 95,000 32,000 127,000 75,000 27,189 102,109 596,809 203,280 122,700 $1,849,700 572,000 166,000 73,300 $ 913,480 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 498,888 Income before taxes Income taxes expense Net income $1,812,000 1,090,000 722,000 552,800 170,000 27,600 142,400 $ Additional Information on Current Year Transactions a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share. c. Declared and paid $93,000 in cash dividends. Problem 12-6A Indirect: Statement of cash flows LO P2, P3 Required: Prepare a complete statement of cash flows using the indirect method for the current ye indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income $ 127,000 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 Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income 127,000 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 $ 181,000 Net cash provided by investing activities Cash flows from investing activities Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid for cash dividends Net cash used in financing activities Net increase (decrease) in cash 181,000
