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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 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 Income taxes expense Net income Additional Information on Current Year Transactions $ 1,812,000 1,090,000 722,000 498,000 54,000 170,000 27,600 $ 142,400 a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share. c. Declared and paid $93,000 in cash dividends. Current Year $ 168,000 89,000 607,000 864,000 345,700 (160,000) $ 1,049,700 $ 95,000 32,000 127,000 596,800 203, 200 122,700 $ 1,049,700 Prior Year $ 111,400 75,000 530,000 716,400 303,000 (106,000) $ 913,400 $ 75,000 27,100 102,100 572,000 166,000 73,300 $ 913,400

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 Income taxes expense Net income Additional Information on Current Year Transactions $ 1,812,000 1,090,000 722,000 498,000 54,000 170,000 27,600 $ 142,400 a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share. c. Declared and paid $93,000 in cash dividends. Current Year $ 168,000 89,000 607,000 864,000 345,700 (160,000) $ 1,049,700 $ 95,000 32,000 127,000 596,800 203, 200 122,700 $ 1,049,700 Prior Year $ 111,400 75,000 530,000 716,400 303,000 (106,000) $ 913,400 $ 75,000 27,100 102,100 572,000 166,000 73,300 $ 913,400

FINANCIAL ACCOUNTING
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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Prepare a complete statement of cash flows using the indirect method for the current year based on the image attached to this question.

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 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 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 $ 1,812,000 1,090,000 722,000 498,000 54,000 170,000 27,600 $ 142,400 a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share. c. Declared and paid $93,000 in cash dividends. Current Year $ 168,000 89,000 607,000 864,000 345,700 (160,000) $ 1,049,700 $ 95,000 32,000 127,000 596,800 203, 200 122,700 $ 1,049,700 Prior Year $ 111,400 75,000 530,000 716,400 303,000 (106,000) $ 913,400 $ 75,000 27,100 102,100 572,000 166,000 73,300 $ 913,400
Transcribed Image Text: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 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 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 $ 1,812,000 1,090,000 722,000 498,000 54,000 170,000 27,600 $ 142,400 a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share. c. Declared and paid $93,000 in cash dividends. Current Year $ 168,000 89,000 607,000 864,000 345,700 (160,000) $ 1,049,700 $ 95,000 32,000 127,000 596,800 203, 200 122,700 $ 1,049,700 Prior Year $ 111,400 75,000 530,000 716,400 303,000 (106,000) $ 913,400 $ 75,000 27,100 102,100 572,000 166,000 73,300 $ 913,400
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