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[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 GOLDEN CORPORATION Comparative Balance Sheets December 31 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 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 $ 1,822,000 1,092,000 730,000 500,000 54,000 176,000 Current Year $ 170,000 92,000 610,000 872,000 351, 100 (161,000) $ 1,062,100 $ 99,000 34,000 133,000 599,200 206,800 123,100 $1,062,100 Prior Year $ 113,600 77,000 532,000 722,600 305,000 (107,000) $920,600 $ 77,000 28,100 105,100 574,000 169,000 72,500 $920,600

[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 GOLDEN CORPORATION Comparative Balance Sheets December 31 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 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 $ 1,822,000 1,092,000 730,000 500,000 54,000 176,000 Current Year $ 170,000 92,000 610,000 872,000 351, 100 (161,000) $ 1,062,100 $ 99,000 34,000 133,000 599,200 206,800 123,100 $1,062,100 Prior Year $ 113,600 77,000 532,000 722,600 305,000 (107,000) $920,600 $ 77,000 28,100 105,100 574,000 169,000 72,500 $920,600

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 31BEB
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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 a. Purchased equipment for $46,100 cash. b. Issued 12,600 shares of common stock for $5 cash per share. c. Declared and paid $95,000 in cash dividends. Cash flows from operating activities GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Cash flows from operating activities Changes in current assets and current liabilities $ 1,822,000 1,092,000 Cash flows from investing activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Cash flows from financing activities: 730,000 500,000 54,000 176,000, 30,400 $ 145,600 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year
Transcribed Image Text: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 a. Purchased equipment for $46,100 cash. b. Issued 12,600 shares of common stock for $5 cash per share. c. Declared and paid $95,000 in cash dividends. Cash flows from operating activities GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Cash flows from operating activities Changes in current assets and current liabilities $ 1,822,000 1,092,000 Cash flows from investing activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Cash flows from financing activities: 730,000 500,000 54,000 176,000, 30,400 $ 145,600 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year
[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 $ 1,822,000 1,092,000 730,000 500,000 54,000 176,000 Current Year $ 170,000 92,000 610,000 872,000 351,100 (161,000) $ 1,062,100 $ 99,000 34,000 133,000 599,200 206,800 123,100 $ 1,062,100 Prior Year $ 113,600 77,000 532,000 722,600 305,000 (107,000) $920,600 $77,000 28,100 105,100 574,000 169,000 72,500 $ 920,600
Transcribed Image Text:[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 $ 1,822,000 1,092,000 730,000 500,000 54,000 176,000 Current Year $ 170,000 92,000 610,000 872,000 351,100 (161,000) $ 1,062,100 $ 99,000 34,000 133,000 599,200 206,800 123,100 $ 1,062,100 Prior Year $ 113,600 77,000 532,000 722,600 305,000 (107,000) $920,600 $77,000 28,100 105,100 574,000 169,000 72,500 $ 920,600
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