Required information

Use the following information for the Problems below. (Algo)

Skip to question

[The following information applies to the questions displayed below.] 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.

GOLDEN CORPORATION
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 167,000	$ 110,300
Accounts receivable	87,500	74,000
Inventory	605,500	529,000
Total current assets	860,000	713,300
Equipment	343,000	302,000
Accumulated depreciationEquipment	(159,500)	(105,500)
Total assets	$ 1,043,500	$ 909,800
Liabilities and Equity
Accounts payable	$ 93,000	$ 74,000
Income taxes payable	31,000	26,600
Total current liabilities	124,000	100,600
Equity
Common stock, $2 par value	595,600	571,000
Paid-in capital in excess of par value, common stock	201,400	164,500
Retained earnings	122,500	73,700
Total liabilities and equity	$ 1,043,500	$ 909,800

GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales	$ 1,807,000
Cost of goods sold	1,089,000
Gross profit	718,000
Operating expenses (excluding depreciation)	497,000
Depreciation expense	54,000
Income before taxes	167,000
Income taxes expense	26,200
Net income	$ 140,800

Additional Information on Current Year Transactions

1. Purchased equipment for $41,000 cash.
2. Issued 12,300 shares of common stock for $5 cash per share.
3. Declared and paid $92,000 in cash dividends.

Answer is not complete.

GOLDEN CORPORATION
Statement of Cash Flows
For Current Year Ended December 31
Cash flows from operating activities
Net incomeselected answer correct	$140,800selected answer correct
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
Depreciation expenseselected answer correct	54,000selected answer correct
Changes in current assets and current liabilities
Increase in accounts receivableselected answer correct	13,500selected answer incorrect
Increase in inventoryselected answer correct	76,500selected answer incorrect
Increase in prepaid expensesselected answer incorrect	not attempted
Decrease in accounts receivableselected answer incorrect	13,500selected answer incorrect
Decrease in taxes payableselected answer incorrect	4,400selected answer correct
Net cash provided by operating activitiesselected answer correct		$302,700
Cash flows from investing activities
Cash received from stock issuanceselected answer incorrect	24,600selected answer incorrect
not attempted	not attempted
Net cash provided by investing activitiesselected answer incorrect		24,600
Cash flows from financing activities:
Cash received from stock issuanceselected answer correct	61,500selected answer correct
Cash paid for cash dividendsselected answer correct	92,000selected answer incorrect
Cash paid for equipmentselected answer incorrect	41,000selected answer incorrect
Net cash provided by financing activitiesselected answer incorrect		194,500
Net increase (decrease) in cash		$521,800
Cash balance at December 31, prior year		83,600selected answer incorrect
Cash balance at December 31, current year		$605,400