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 CORPORATIONComparative Balance SheetsDecember 31 Current YearPrior YearAssets Cash$ 180,000$ 124,600Accounts receivable107,00087,000Inventory625,000542,000Total current assets912,000753,600Equipment378,100315,000Accumulated depreciation—Equipment(166,000)(112,000)Total assets$ 1,124,100$ 956,600Liabilities and Equity Accounts payable$ 119,000$ 87,000Income taxes payable44,00033,100Total current liabilities163,000120,100Equity Common stock, $2 par value611,200584,000Paid-in capital in excess of par value, common stock224,800184,000Retained earnings125,10068,500Total liabilities and equity$ 1,124,100$ 956,600GOLDEN CORPORATIONIncome StatementFor Current Year Ended December 31Sales$ 1,872,000Cost of goods sold1,102,000Gross profit770,000Operating expenses (excluding depreciation)510,000Depreciation expense54,000Income before taxes206,000Income taxes expense44,400Net income$ 161,600 Additional Information on Current Year Transactions Purchased equipment for $63,100 cash. Issued 13,600 shares of common stock for $5 cash per share. Declared and paid $105,000 in cash dividends. Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method.
Golden Corporation's current year income statement, comparative
GOLDEN CORPORATIONComparative Balance SheetsDecember 31 Current YearPrior YearAssets Cash$ 180,000$ 124,600Accounts receivable107,00087,000Inventory625,000542,000Total current assets912,000753,600Equipment378,100315,000Accumulated
Additional Information on Current Year Transactions
- Purchased equipment for $63,100 cash.
- Issued 13,600 shares of common stock for $5 cash per share.
- Declared and paid $105,000 in cash dividends.
Required:
Prepare a complete statement of
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