Golden Corp.s current-year income statement, comparative balance sheets, and additional information follow. For the year, (1) All
Question:
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, and
(5) Any change in Income Taxes Payable reflects the accrual and cash payment of taxes.
Required
Prepare a complete statement of cash flows using the indirect method for the current year.
Transcribed Image Text:
GOLDEN CORPORATION GOLDEN CORPORATION Comparative Balance Sheets Income Statement At December 31 Current Year Prior Year For Current Year Ended December 31 Assets Sales $1,792,000 Cost of goods sold. Gross profit.. Operating expenses (excluding depreciation) Depreciation expense Cash. $ 164,000 $107,000 1,086,000 Accounts receivable 83,000 71,000 706,000 Inventory 601,000 526,000 494,000 Total current assets. 848,000 704,000 54,000 Equipment 335,000 299,000 Income before taxes. 158,000 Accum. depreciation-Equipment... Income taxes expense. 22,000 (158,000) $1,025,000 (104,000) $899,000 Total assets Net income. $ 136,000 Liabilities and Equity $ 71,000 Accounts payable Income taxes payable. Total current liabilities. 2$ 87,000 28,000 25,000 Additional Information on Current-Year Transactions 115,000 96,000 a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 in cash dividends. Equity Common stock, $2 par value . Paid-in capital in excess of par value, common stock.. Retained earnings. 592,000 568,000 196,000 160,000 75,000 $899,000 122,000 Total liabilities and equity. $1,025,000 Activat Go to Set
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