Please do not give solution in image format thanku 2Golden 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 receivable.InventoryTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableIncome taxes payableTotal current liabilitiesGOLDEN CORPORATIONComparative Balance SheetsDecember 31EquityCommon stock, $2 par valuePaid-in capital in excess of par value, common stockRetained earningsTotal liabilities and equityGOLDEN CORPORATIONIncome StatementFor Current Year Ended December 31SalesCost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expense.Income before taxesIncome taxes expenseNet incomeAdditional Information on Current Year TransactionsCurrent Year$ 174,00098,000616,000888,000361,900(163,000)$ 1,086,900$ 107,00038,000145,000$ 1,842,0001,096, 000746,000504,00054,000188,00036,000$152,000a. Purchased equipment for $52,900 cash.b. Issued 13,000 shares of common stock for $5 cash per share.c. Declared and paid $99,000 in cash dividends.Prior Year$ 118,00081,000536,000735,000309,000(109,000)$ 935,000$ 81,00030,100111, 100604,000214,000123, 900$ 1,086, 900578,000175,00070,900$ 935,000 Required:Prepare a complete statement of cash flows using the indirect method for the current year.Note: Amounts to be deducted should be indicated with a minus sign.Cash flows from operating activitiesAdjustments to reconcile net income to net cash provided by operations:Income statement items not affecting cashChanges in current assets and current liabilitiesCash flows from investing activitiesGOLDEN CORPORATIONStatement of Cash FlowsFor Current Year Ended December 31Cash flows from investing activitiesCash flows from financing activities:Net increase (decrease) in cashCash balance at December 31, prior yearCash balance at December 31, current year

Cash flow statement is the financial statement which helps the entity in determining its cash…

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 Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities GOLDEN CORPORATION Comparative Balance Sheets December 31 depreciation-Equipment 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 Current Year $ 174,000 98,000 616,000 888,000 361,900 (163,000) $ 1,086,900 $ 107,000 38,000 145,000 $ 1,842,000 1,096, 000 746,000 504,000 54,000 188,000 36,000 $ 152,000 Additional Information on Current Year Transactions a. Purchased equipment for $52,900 cash. b. Issued 13,000 shares of common stock for $5 cash per share. c. Declared and paid $99,000 in cash dividends. Prior Year $ 118,000 81,000 536,000 735,000 309,000 (109,000) $ 935,000 $ 81,000 30, 100 111, 100 604,000 214,000 123,900 $ 1,086, 900 578,000 175,000 70,900 $935,000

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q