Question

GOLDEN CORPORATION Comparative Balance Sheets December 31
	Current Year						Prior Year
Assets
Cash		$	167,000					$	110,300
Accounts receivable			87,500						74,000
Inventory			605,500						529,000
Total current assets			860,000						713,300
Equipment			343,000						302,000
Accum. depreciation—Equipment			(159,500	)					(105,500	)
Total assets		$	1,043,500					$	909,800
Liabilities and Equity
Accounts payable		$	93,000					$	74,000
Income taxes payable			31,000						26,600
Total current liabilities			124,000						100,600
Equity
Common stock, $2 par value			595,600						571,000
Paid-in capital in excess of par value, common stock			201,400						164,500
Retained earnings			122,500						73,700
Total liabilities and equity		$	1,043,500					$	909,800

  

GOLDEN CORPORATION Income Statement For Current Year Ended December 31
Sales				$	1,807,000
Cost of goods sold					1,089,000
Gross profit					718,000
Operating expenses
Depreciation expense	$	54,000
Other expenses		497,000			551,000
Income before taxes					167,000
Income taxes expense					26,200
Net income				$	140,800

GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year Balance sheet—debit balance accounts Cash $110,300 $167,000 Accounts receivable 74,000 Inventory 529,000 Equipment 302,000 $1,015,300 $167,000 Balance sheet—credit balance accounts Accumulated depreciation—Equipment $105,500 Accounts payable 74,000 Income taxes payable 26,600 Common stock, $2 par value 571,000 Paid-in capital in excess of par value, common stock 164,500 Retained earnings 73,700 $1,015,300 $0 Statement of cash flows Operating activities Investing activities Financing activities $0 $0

Answer 1

Golden Corporation Spreadsheet for Statement of Cashflows For the Year ended 31.12.2017 Analysis of Change Debit Credit Prior Year Current Year Balance sheet - debit balance accounts Cash Accounts Receivable Inventory Equipment 110300 74000 529000 302000 1015300 56700 13500 76500 41000 167000 87500 605500 343000 1203000 Balancesheet - Credit Balance accounts Accumulated Depreciation - Equipment Accounts Payable Income Taxes Payable Common Stock - $2 par value Paid in Capital in excess of par value common stock Retained Earnings 105500 74000 26600 571000 164500 73700 1015300 54000 19000 4400 24600 36900 48800 159500 93000 31000 595600 201400 122500 1203000

140800 Statement of Cashflows For the period ending Current Year Cash flow from Operating Activity Net Income Adjustments: Depreciation Expense Increase in Accounts Receivable Increase in Inventory Increase in Accounts Payable Increase in Income Taxes Payable Cash generated from Operating Activity 54000 -13500 -76500 19000 4400 -12600 128200 Cash flow from Investing Activity Equipment Purchased Cash used for Investing Activity -41000 -41000 61500 -92000 Cash flow from Financing Activity Common Stock issued Dividends paid Cash used for Financing Activity Net Increase in Cash Beginning Cash Balance Ending Cash Balance -30500 56700 110300 167000