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 $ 1,817,000 1,091,000 726,000 499,000 54,000 173,000 29,000 $ 144,000 Additional Information on Current Year Transactions a. Purchased equipment for $44,400 cash. b. Issued 12,500 shares of common stock for $5 cash per share. c. Declared and paid $94.000 in cash dividends. Current Year $ 169,000 90,500 608,500 868,000 348,400 (160,500) $ 1,055,900 $ 97,000 33,000 130,000 Prior Year 598,000 205,000 122,900 $ 112,500 76,000 531,000 719,500 304,000 (106,500) $ 917,000 $ 76,000 27,600 103,600 573,000 167,500 72,900 $ 1,055,900 $ 917,000
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 $ 1,817,000 1,091,000 726,000 499,000 54,000 173,000 29,000 $ 144,000 Additional Information on Current Year Transactions a. Purchased equipment for $44,400 cash. b. Issued 12,500 shares of common stock for $5 cash per share. c. Declared and paid $94.000 in cash dividends. Current Year $ 169,000 90,500 608,500 868,000 348,400 (160,500) $ 1,055,900 $ 97,000 33,000 130,000 Prior Year 598,000 205,000 122,900 $ 112,500 76,000 531,000 719,500 304,000 (106,500) $ 917,000 $ 76,000 27,600 103,600 573,000 167,500 72,900 $ 1,055,900 $ 917,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 16-6A (Algo) Indirect: Statement of cash flows LO P2, P3
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 activities
--‒‒‒‒‒‒‒‒‒‒‒‒‒…………….
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
GOLDEN CORPORATION
Statement of Cash Flows
For Current Year Ended December 31
Changes in current assets and current liabilities
Cash flows from investing activities
Cash flows from financing activities:
Net increase (decrease) in cash
Cash balance at December 31, prior year
Cash balance at December 31, current year
$
$
$
0
0
0
0
0
![!
Required information
Use the following information for the Problems below. (Algo)
[The following information applies to the questions displayed below.]
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
$ 1,817,000
1,091,000
726,000
499,000
54,000
173,000
29,000
$ 144,000
a. Purchased equipment for $44,400 cash.
b. Issued 12,500 shares of common stock for $5 cash per share.
c. Declared and paid $94,000 in cash dividends.
Current Year
$ 169,000
90,500
608,500
868,000
348,400
(160,500)
$ 1,055,900
$ 97,000
33,000
130,000
598,000
205,000
122,900
$ 1,055,900
Prior Year
$ 112,500
76,000
531,000
719,500
304,000
(106,500)
$ 917,000
$ 76,000
27,600
103,600
573,000
167,500
72,900
$ 917,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2781b477-a13d-4959-ac03-8179b0539c9f%2F47c53e17-420e-41af-9334-ce1562d344e0%2Fzftiguw_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Use the following information for the Problems below. (Algo)
[The following information applies to the questions displayed below.]
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
$ 1,817,000
1,091,000
726,000
499,000
54,000
173,000
29,000
$ 144,000
a. Purchased equipment for $44,400 cash.
b. Issued 12,500 shares of common stock for $5 cash per share.
c. Declared and paid $94,000 in cash dividends.
Current Year
$ 169,000
90,500
608,500
868,000
348,400
(160,500)
$ 1,055,900
$ 97,000
33,000
130,000
598,000
205,000
122,900
$ 1,055,900
Prior Year
$ 112,500
76,000
531,000
719,500
304,000
(106,500)
$ 917,000
$ 76,000
27,600
103,600
573,000
167,500
72,900
$ 917,000
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