Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 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 Sales Cost of goods sold Gross profit GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,887,000 1,105,000 782,000 513,000 54,000 215,000 48,600 $ 166,400 Additional Information on Current Year Transactions a. Purchased equipment for $68,200 cash. b. Issued 13,900 shares of common stock for $5 cash per share. c. Declared and paid $108,000 in cash dividends. Current Year Prior Year $ 127,900 90,000 545,000 $ 183,000 111,500 629,500 924,000 386,200 (167,500) $ 1,142,700 $ 125,000 762,900 318,000 (113,500) $ 967,400 $ 90,000 34,600 124,600 47,000 172,000 614,800 587,000 230,200 188,500 125,700 67,300 $ 1,142,700 $ 967,400 Required: Prepare a complete statement of cash flows using the direct method for the current year. Note: 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 Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0 0 $ 0 $ 0 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 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 Sales Cost of goods sold Gross profit GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,887,000 1,105,000 782,000 513,000 54,000 215,000 48,600 $ 166,400 Additional Information on Current Year Transactions a. Purchased equipment for $68,200 cash. b. Issued 13,900 shares of common stock for $5 cash per share. c. Declared and paid $108,000 in cash dividends. Current Year Prior Year $ 127,900 90,000 545,000 $ 183,000 111,500 629,500 924,000 386,200 (167,500) $ 1,142,700 $ 125,000 762,900 318,000 (113,500) $ 967,400 $ 90,000 34,600 124,600 47,000 172,000 614,800 587,000 230,200 188,500 125,700 67,300 $ 1,142,700 $ 967,400 Required: Prepare a complete statement of cash flows using the direct method for the current year. Note: 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 Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0 0 $ 0 $ 0
Expert Answer:
Related Book For
Principles Of Financial Accounting (Chapters 1-17)
ISBN: 9781260780147
25th Edition
Authors: John Wild
Posted Date:
Students also viewed these finance questions
-
Review the framework for analyzing the internal and external environments (SWOT) in chapter 4 of your textbook. Select a well-known product and then discuss each of the analysis factors as it relates...
-
In a simple macroeconomic model, the value of national income Y may be found by solv- ing the system: G=250 T=50 1 = 100 C= 0.75Y, +150 (consumption) where disposable income Y, Y-T. (a) Calculate the...
-
Christina is trying to save money in her bank account. She decides that she can deposit $1000 each month into the account. The account earns 2.3% interest each month. How much money will be in the...
-
A horizontal beam AB is pin-supported at end A and carries a load Q at joint B, as shown in the figure. The beam is also supported at C by a pinned-end column of length L; the column is restrained...
-
Discuss with example aboutfederal reserve system & explain how banks' balance sheets are formed?
-
This exercise considers nursing home data provided by the Wisconsin Department of Health and Family Services (DHFS). Part 1: Use cost-report year 2000 data, and do the following analysis. a....
-
Erika and Kitty, who are twins, just received $30,000 each for their 25th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her early...
-
8 areas that make up the revenue cycle of a health service provider (in this case, hospitals). 2. What is the Office of the Inspector General? What is its importance for the revenue cycle of a health...
-
Find the minimum and maximum values of the function subject to the given constraint. f ( x , y , z ) = x 2 + y 2 + z 2 , x + 7 y + 4 z = 64
-
Nonverbal communication can be very subtle and difficult for other cultures to understand. Give some examples of the four nonverbal communication categories (kinesics, proxemics, paralanguage, and...
-
Explain why issuing new securities can be a risky business.
-
What are some global mobility trends when staffing for global operations?
-
How should a company prepare itself in order to achieve successful strategy implementation?
-
What does IHRM take into account when working on compensating expatriates?
-
Learning, Inc. had the following amounts for the year ended December 31, 2007: Depreciation and amortization $109.4 million Increase in payables 2.8 million Decrease in inventories 30.7 million...
-
Identify the tax issues or problems suggested by the following situations. State each issue as a question. Jennifer did not file a tax return for 2007 because she honestly believed that no tax was...
-
Define a closely held corporation.
-
Explain the role played by a board of directors of a corporation.
-
Explain the steps in forming a limited liability corporation.
Study smarter with the SolutionInn App