Question

Golden Corp.'s current year income statement , comparative balance sheets, and additional information follow. For the year, () all sales are credit sales. (2) all credits to Accounts Receivable reflect cash receipts from customers , (3) all purchases of inventory are on credit, () all debits to Accounts Payable reflect cash payments for inventory(5) Other Expenses are all cash expenses , and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.

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.)

Required information [The following information applies to the questions displayed below! Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year. () all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers. 3) purchases of Inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes GOLDEN CORPORATION Comparative Balance Sheets December 31 Prior Tear $ 112,500 76,000 Lecounts receivable Teventory Total corrent assets Equipment Meen. depreciatio- ent Liabilities Equity Recounts payable These are payable Total current liabilities Paid capital in one of par value Retained earning Total liabilities and equity P C Tear Ended December Additional Information on Current Year Transactions a. Purchased equipment for $44.400 cash issued 12.500 shares of common stock for $5 cash per share Declared and paid $94.000 in cash dividends.

Answer 1

$ 144,000 S $ $ $ $ GOLDEN CORPORATION Statement of Cash flows For the Year ended December 31 Cash flows from Operating Activities: Net Income Adjustments to reconcile Net Income to Net Cash Provided by Operations Depreciation expenses Increases in accounts Receivables Increases in Inventory Increses in accounts payable Increases in Income Taxes Payable Net Cash provided by operating activities Cash Flows from Investing Activities Purchase of equipment Net Cash Used by Investing activities Cash Flows from Financing Activities Issuance of Common stock Payment of dividends Net Cash used by Financing activities Net Increase in Cash Cash balance at December 31, prior year cash balance at December 31, current year 54.000 (14,500) (77,500) 21,000 5,400 S $ (11,600) 132,400 S (44.400) $ (44.400) $ S 62,500 (94.000) S S S S (31,500) 56,500 112,500 169.000