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. 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 CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 178,000 $ 122,400 Accounts receivable 104,000 85,000 Inventory 622,000 540,000 Total current assets 904,000 747,400 Equipment 372,700 313,000 Accumulated depreciation—Equipment (165,000) (111,000) Total assets $ 1,111,700 $ 949,400 Liabilities and Equity Accounts payable $ 115,000 $ 85,000 Income taxes payable 42,000 32,100 Total current liabilities 157,000 117,100 Equity Common stock, $2 par value 608,800 582,000 Paid-in capital in excess of par value, common stock 221,200 181,000 Retained earnings 124,700 69,300 Total liabilities and equity $ 1,111,700 $ 949,400 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $ 1,862,000 Cost of goods sold 1,100,000 Gross profit 762,000 Operating expenses (excluding depreciation) 508,000 Depreciation expense 54,000 Income before taxes 200,000 Income taxes expense 41,600 Net income $ 158,400 Additional Information on Current Year Transactions Purchased equipment for $59,700 cash. Issued 13,400 shares of common stock for $5 cash per share. Declared and paid $103,000 in cash dividends. Prepare a complete statement of cash flows using the indirect method for the current year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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.

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 CORPORATION
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 178,000	$ 122,400
Accounts receivable	104,000	85,000
Inventory	622,000	540,000
Total current assets	904,000	747,400
Equipment	372,700	313,000
Accumulated depreciation—Equipment	(165,000)	(111,000)
Total assets	$ 1,111,700	$ 949,400
Liabilities and Equity
Accounts payable	$ 115,000	$ 85,000
Income taxes payable	42,000	32,100
Total current liabilities	157,000	117,100
Equity
Common stock, $2 par value	608,800	582,000
Paid-in capital in excess of par value, common stock	221,200	181,000
Retained earnings	124,700	69,300
Total liabilities and equity	$ 1,111,700	$ 949,400

GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales	$ 1,862,000
Cost of goods sold	1,100,000
Gross profit	762,000
Operating expenses (excluding depreciation)	508,000
Depreciation expense	54,000
Income before taxes	200,000
Income taxes expense	41,600
Net income	$ 158,400

Additional Information on Current Year Transactions

Purchased equipment for $59,700 cash.
Issued 13,400 shares of common stock for $5 cash per share.
Declared and paid $103,000 in cash dividends.

Prepare a complete statement of cash flows using the indirect method for the current year

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