Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. the year, (1)...

Transcribed Image Text:

Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. 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) ar change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable $ 183,000 111,500 629,500 924,000 386,200 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 (167,500) $ 1,142,700 $ 125,000 47,000 172,000 $ 127,900 90,000 545,000 762,900 318,000 (113,500) $ 967,400 $ 90,000 34,600 124,600 614,800 587,000 230,200 188,500 125,700 67,300 $ 1,142,700 $ 967,400 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 $ 1,887,000 1,105,000 782,000 513,000 54,000 215,000 48,600 $ 166,400 Net income 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. GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 December 31, Prior Year Analysis of Changes Debit December 31, Credit Current Year Balance sheet-debit balance accounts Cash $ 127,900 $ 183,000 Accounts receivable 90,000 Inventory 545,000 Equipment 318,000 $ 1,080,900 $ 183,000 Balance sheet-credit balance accounts Accumulated depreciation-Equipment $ 113,500 Accounts payable 90,000 Income taxes payable 34,600 Common stock, $2 par value Paid-in capital in excess of par value, common stock 587,000 188,500 Retained earnings 67,300 $ 1,080,900 $ Statement of cash flows Operating activities Investing activities Financing activities $ 0 $ 0 Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. 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) ar change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable $ 183,000 111,500 629,500 924,000 386,200 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 (167,500) $ 1,142,700 $ 125,000 47,000 172,000 $ 127,900 90,000 545,000 762,900 318,000 (113,500) $ 967,400 $ 90,000 34,600 124,600 614,800 587,000 230,200 188,500 125,700 67,300 $ 1,142,700 $ 967,400 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 $ 1,887,000 1,105,000 782,000 513,000 54,000 215,000 48,600 $ 166,400 Net income 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. GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 December 31, Prior Year Analysis of Changes Debit December 31, Credit Current Year Balance sheet-debit balance accounts Cash $ 127,900 $ 183,000 Accounts receivable 90,000 Inventory 545,000 Equipment 318,000 $ 1,080,900 $ 183,000 Balance sheet-credit balance accounts Accumulated depreciation-Equipment $ 113,500 Accounts payable 90,000 Income taxes payable 34,600 Common stock, $2 par value Paid-in capital in excess of par value, common stock 587,000 188,500 Retained earnings 67,300 $ 1,080,900 $ Statement of cash flows Operating activities Investing activities Financing activities $ 0 $ 0