Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year,...

  

  

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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. 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 GOLDEN CORPORATION Comparative Balance Sheets December 31 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,857,000 1,099,000 758,000 507,000 Current Year 54,000 197,000 40,200 $ 156,800. Additional Information on Current Year Transactions a. Purchased equipment for $58,000 cash. b. Issued 13,300 shares of common stock for $5 cash per share. c. Declared and paid $102,000 in cash dividends. $177,000 102,500 620,500 900,000 370,000 (164,500) $ 1,105,500 $ 113,000 41,000 154,000 607,600 219,400. 124,500 $ 1,105,500 Prior Year $ 121,300 84,000 539,000 744,300 312,000 (110,500) $ 945,800 $ 84,000 31,600 115,600 581,000 179,500 69,700 $ 945,800 Required: Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Changes in current assets and current liabilities 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 0 Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method. Note: Enter all amounts as positive values. Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment Balance sheet-credit balance accounts Accumulated depreciation-Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Statement of cash flows Operating activities Investing activities GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Financing activities December 31, Prior Year $ $ $ $ 121,300 84,000 539,000 312,000 1,056,300 110,500 84,000 31,600 581,000 179,500 69,700 1,056,300 Analysis of Changes Credit Debit December 31, Current Year $ 177,000 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. 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 GOLDEN CORPORATION Comparative Balance Sheets December 31 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,857,000 1,099,000 758,000 507,000 Current Year 54,000 197,000 40,200 $ 156,800. Additional Information on Current Year Transactions a. Purchased equipment for $58,000 cash. b. Issued 13,300 shares of common stock for $5 cash per share. c. Declared and paid $102,000 in cash dividends. $177,000 102,500 620,500 900,000 370,000 (164,500) $ 1,105,500 $ 113,000 41,000 154,000 607,600 219,400. 124,500 $ 1,105,500 Prior Year $ 121,300 84,000 539,000 744,300 312,000 (110,500) $ 945,800 $ 84,000 31,600 115,600 581,000 179,500 69,700 $ 945,800 Required: Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Changes in current assets and current liabilities 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 0 Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method. Note: Enter all amounts as positive values. Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment Balance sheet-credit balance accounts Accumulated depreciation-Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Statement of cash flows Operating activities Investing activities GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Financing activities December 31, Prior Year $ $ $ $ 121,300 84,000 539,000 312,000 1,056,300 110,500 84,000 31,600 581,000 179,500 69,700 1,056,300 Analysis of Changes Credit Debit December 31, Current Year $ 177,000

Answer rating: 100% (QA)

GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Description Amount Cash flows from operating activities 277000 Cash flow... View the full answer