[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. Assets Cash GOLDEN CORPORATION Comparative Balance Sheets December 31 Accounts receivable 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 Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes $ 1,822,000 1,092,000 730,000 500,000 54,000 176,000 Current Year $ 170,000 92,000 610,000 872,000 351, 100 (161,000) $ 1,062,100 $ 99,000 34,000 133,000 599,200 206,800 123,100 $1,062,100 Prior Year $ 113,600 77,000 532,000 722,600 305,000 (107,000) $920,600 $ 77,000 28,100 105,100 574,000 169,000 72,500 $920,600
[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. Assets Cash GOLDEN CORPORATION Comparative Balance Sheets December 31 Accounts receivable 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 Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes $ 1,822,000 1,092,000 730,000 500,000 54,000 176,000 Current Year $ 170,000 92,000 610,000 872,000 351, 100 (161,000) $ 1,062,100 $ 99,000 34,000 133,000 599,200 206,800 123,100 $1,062,100 Prior Year $ 113,600 77,000 532,000 722,600 305,000 (107,000) $920,600 $ 77,000 28,100 105,100 574,000 169,000 72,500 $920,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text: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
Additional Information on Current Year Transactions
a. Purchased equipment for $46,100 cash.
b. Issued 12,600 shares of common stock for $5 cash per share.
c. Declared and paid $95,000 in cash dividends.
Cash flows from operating activities
GOLDEN CORPORATION
Statement of Cash Flows
For Current Year Ended December 31
Required:
Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be
indicated with a minus sign.)
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
Cash flows from operating activities
Changes in current assets and current liabilities
$ 1,822,000
1,092,000
Cash flows from investing activities
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
Cash flows from financing activities:
730,000
500,000
54,000
176,000,
30,400
$ 145,600
Net increase (decrease) in cash
Cash balance at December 31, prior year
Cash balance at December 31, current year
![[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.
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
Equity
Common stock, $2 par value
GOLDEN CORPORATION
Comparative Balance Sheets
December 31
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
$ 1,822,000
1,092,000
730,000
500,000
54,000
176,000
Current Year
$ 170,000
92,000
610,000
872,000
351,100
(161,000)
$ 1,062,100
$ 99,000
34,000
133,000
599,200
206,800
123,100
$ 1,062,100
Prior Year
$ 113,600
77,000
532,000
722,600
305,000
(107,000)
$920,600
$77,000
28,100
105,100
574,000
169,000
72,500
$ 920,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9f99bc1-b177-45e1-a6f4-6be690697c34%2Fa2b3ba8c-21a0-45b0-a15a-bb7b1245952c%2F50usx6q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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.
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
Equity
Common stock, $2 par value
GOLDEN CORPORATION
Comparative Balance Sheets
December 31
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
$ 1,822,000
1,092,000
730,000
500,000
54,000
176,000
Current Year
$ 170,000
92,000
610,000
872,000
351,100
(161,000)
$ 1,062,100
$ 99,000
34,000
133,000
599,200
206,800
123,100
$ 1,062,100
Prior Year
$ 113,600
77,000
532,000
722,600
305,000
(107,000)
$920,600
$77,000
28,100
105,100
574,000
169,000
72,500
$ 920,600
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