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
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
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 2PB: Transactions related to revenue and cash receipts completed by Sterling Engineering Services during...
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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.
GOLDEN CORPORATION | ||
Comparative Balance Sheets | ||
December 31 | ||
Current Year | Prior Year | |
---|---|---|
Assets | ||
Cash | $ 171,000 | $ 114,700 |
Accounts receivable | 93,500 | 78,000 |
Inventory | 611,500 | 533,000 |
Total current assets | 876,000 | 725,700 |
Equipment | 353,800 | 306,000 |
(161,500) | (107,500) | |
Total assets | $ 1,068,300 | $ 924,200 |
Liabilities and Equity | ||
Accounts payable | $ 101,000 | $ 78,000 |
Income taxes payable | 35,000 | 28,600 |
Total current liabilities | 136,000 | 106,600 |
Equity | ||
Common stock, $2 par value | 600,400 | 575,000 |
Paid-in capital in excess of par value, common stock | 208,600 | 170,500 |
123,300 | 72,100 | |
Total liabilities and equity | $ 1,068,300 | $ 924,200 |
GOLDEN CORPORATION | |
Income Statement | |
For Current Year Ended December 31 | |
Sales | $ 1,827,000 |
---|---|
Cost of goods sold | 1,093,000 |
Gross profit | 734,000 |
Operating expenses (excluding depreciation) | 501,000 |
Depreciation expense | 54,000 |
Income before taxes | 179,000 |
Income taxes expense | 31,800 |
Net income | $ 147,200 |
Additional Information on Current Year Transactions
- Purchased equipment for $47,800 cash.
- Issued 12,700 shares of common stock for $5 cash per share.
- Declared and paid $96,000 in cash dividends.
Problem 12-8AB (Algo) Direct: Statement of cash flows LO P5
Required:
Prepare a complete statement of cash flows using the direct method for the current year.
Note: Amounts to be deducted should be indicated with a minus sign.
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