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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 Total assets Liabilities and Equity Accounts payable. depreciation-Equipment 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 $1,882,000 1,104,000 778,000 512,000 54,000 212,000 47,200 $164,800 Additional Information on Current Year Transactions a. Purchased equipment for $66,500 cash. h. Issued 13,800 shares of common stock for $5 cash per share. Current Year $ 182,000 110,000 625,000 920,000 383,500 (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

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. depreciation-Equipment 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 $1,882,000 1,104,000 778,000 512,000 54,000 212,000 47,200 $164,800 Additional Information on Current Year Transactions a. Purchased equipment for $66,500 cash. h. Issued 13,800 shares of common stock for $5 cash per share. Current Year $ 182,000 110,000 625,000 920,000 383,500 (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
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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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 $ 1,882,000 1,104,000 778,000 512,000 54,000 212,000 47,200 $164,800 Additional Information on Current Year Transactions a. 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 $ 182,000 110,000 628,000 920,000 383,500 (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 www Mand
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. 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 $ 1,882,000 1,104,000 778,000 512,000 54,000 212,000 47,200 $164,800 Additional Information on Current Year Transactions a. 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 $ 182,000 110,000 628,000 920,000 383,500 (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 www Mand
cash. b. Issued 13,800 shares of common stock for $5 cash per share. c. Declared and paid $107.000 in cash dividends. 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 CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash paid for operating expenses Cash paid for inventory Cash received from customers Cash paid for income taxes Cash flows from investing activities Cash paid for equipment Cash flows from financing activities Cash paid for dividends Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (84,000) (66,500) $ $ S (84,000) (66.500) 0 (150.500) 126.800 (23.700)
Transcribed Image Text:cash. b. Issued 13,800 shares of common stock for $5 cash per share. c. Declared and paid $107.000 in cash dividends. 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 CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash paid for operating expenses Cash paid for inventory Cash received from customers Cash paid for income taxes Cash flows from investing activities Cash paid for equipment Cash flows from financing activities Cash paid for dividends Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (84,000) (66,500) $ $ S (84,000) (66.500) 0 (150.500) 126.800 (23.700)
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