Additional Information on Year 2016 Transactions

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.

Required

Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method.

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Assets Cash. Accounts receivable Inventory. Total current assets GOLDEN CORPORATION Comparative Balance Sheets December 31, 2016 and 2015 Equipment.. Accum. 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.... 2016 $ 164,000 83,000 601,000 848,000 2015 335,000 299,000 (158,000) (104,000) $1,025,000 $899,000 592,000 $107,000 71,000 526,000 704,000 $ 87,000 $ 71,000 28,000 115,000 196,000 122.000 $1,025,000 25,000 96,000 568,000 160,000 75,000 $899,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2016 Sales Cost of goods sold. Gross profit. Operating expenses Depreciation expense Other expenses.. Income before taxes Income taxes expense.. Net income $ 54,000 494,000 $1,792,000 1,086,000 706,000 548.000 158,000 22,000 $ 136,000 Assets Cash. Accounts receivable Inventory. Total current assets GOLDEN CORPORATION Comparative Balance Sheets December 31, 2016 and 2015 Equipment.. Accum. 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.... 2016 $ 164,000 83,000 601,000 848,000 2015 335,000 299,000 (158,000) (104,000) $1,025,000 $899,000 592,000 $107,000 71,000 526,000 704,000 $ 87,000 $ 71,000 28,000 115,000 196,000 122.000 $1,025,000 25,000 96,000 568,000 160,000 75,000 $899,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2016 Sales Cost of goods sold. Gross profit. Operating expenses Depreciation expense Other expenses.. Income before taxes Income taxes expense.. Net income $ 54,000 494,000 $1,792,000 1,086,000 706,000 548.000 158,000 22,000 $ 136,000

Answer rating: 100% (QA)

1 Cash flow statement CFS It is the statement which shows the summary of all inflow of cash and outflow of cash in business organization It reconciles ... View the full answer