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 GOLDEN CORPORATION Comparative Balance Sheets December 31 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 GOLDEN CORPORATION Current Year Prior Year $ 165,000 $ 108,100 84,500 72,000 602,500 852,000 337,600 (158,500) 527,000 707,100 300,000 (104,500) $ 902,600 $ 1,031,100 $ 89,000 29,000 $ 72,000 118,000 593,200 25,600 97,600 569,000 197,800 161,500 122,100 $ 1,031,100 74,500 $ 902,600 Sales Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,797,000 1,087,000 710,000 495,000 54,000 161,000 23,400 $ 137,600 Additional Information on Current Year Transactions a. Purchased equipment for $37,600 cash. b. Issued 12,100 shares of common stock for $5 cash per share. c. Declared and paid $90,000 in cash dividends. equired: epare a complete statement of cash flows using the indirect method for the current year. Ote: Amounts to be deducted should be indicated with a minus sign. GOLDEN CORPORATION Statement of Cash Flows 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 GOLDEN CORPORATION Comparative Balance Sheets December 31 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 GOLDEN CORPORATION Current Year Prior Year $ 165,000 $ 108,100 84,500 72,000 602,500 852,000 337,600 (158,500) 527,000 707,100 300,000 (104,500) $ 902,600 $ 1,031,100 $ 89,000 29,000 $ 72,000 118,000 593,200 25,600 97,600 569,000 197,800 161,500 122,100 $ 1,031,100 74,500 $ 902,600 Sales Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,797,000 1,087,000 710,000 495,000 54,000 161,000 23,400 $ 137,600 Additional Information on Current Year Transactions a. Purchased equipment for $37,600 cash. b. Issued 12,100 shares of common stock for $5 cash per share. c. Declared and paid $90,000 in cash dividends. equired: epare a complete statement of cash flows using the indirect method for the current year. Ote: Amounts to be deducted should be indicated with a minus sign. GOLDEN CORPORATION Statement of Cash Flows
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To prepare the statement of cash flows using the indirect method for Golden Corporation we need to follow these steps 1 Operating Activities Start wit... View the full answer
Related Book For
Principles Of Financial Accounting (Chapters 1-17)
ISBN: 9781260780147
25th Edition
Authors: John Wild
Posted Date:
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