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.GOLDEN CORPORATIONStatement of Cash FlowsFor Current Year Ended December 31Cash flows from operating activitiesCash received from customersCash paid for inventoryCash paid for operating expensesCash flows from investing activitiesCash paid for equipmentCash flows from financing activitiesCash received from issuing stockCash paid for dividendsNet increase (decrease) in cashCash balance at December 31, prior yearCash balance at December 31, current year$$$00000 Required information[The following information applies to the questions displayed below.]Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. Forthe year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) allpurchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) anychange in Income Taxes Payable reflects the accrual and cash payment of taxes.AssetsCashAccounts receivableInventoryTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableIncome taxes payableTotal current liabilitiesEquityCommon stock, $2 par valueGOLDEN CORPORATIONComparative Balance SheetsDecember 31Paid-in capital in excess of par value, common stockRetained earningsTotal liabilities and equityGOLDEN CORPORATIONIncome StatementFor Current Year Ended December 31SalesCost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expenseIncome before taxesIncome taxes expenseNet incomeAdditional Information on Current Year Transactions$ 1,882,0001,104,000778,000512,00054,000212,00047,200$ 164,800a. Purchased equipment for $66,500 cash.b. Issued 13,800 shares of common stock for $5 cash per share.c. Declared and paid $107,000 in cash dividends.Current Year$ 182,000110,000628,000920,000383,500(167,000)$ 1,136,500$ 123,00046,000169,000613,600228,400125,500$ 1,136,500Prior Year$ 126,80089,000544,000759,800317,000(113,000)$ 963,800$ 89,00034,100123,100586,000187,00067,700$ 963,800

It is important in the business entity to prepare the Cash flow statement which can be determine the…

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 GOLDEN CORPORATION Comparative Balance Sheets December 31 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Current Year $ 182,000 110,000 628,000 920,000 383,500 (167,000) $ 1,136,500 $ 123,000 46,000 169,000 613,600 228,400 125,500 $ 1,136,500 Prior Year $ 126,800 89,000 544,000 759,800 317,000 (113,000) $ 963,800 $ 89,000 34,100 123,100 586,000 187,000 67,700 $ 963,800

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 GOLDEN CORPORATION Comparative Balance Sheets December 31 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Current Year $ 182,000 110,000 628,000 920,000 383,500 (167,000) $ 1,136,500 $ 123,000 46,000 169,000 613,600 228,400 125,500 $ 1,136,500 Prior Year $ 126,800 89,000 544,000 759,800 317,000 (113,000) $ 963,800 $ 89,000 34,100 123,100 586,000 187,000 67,700 $ 963,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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