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, (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, (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 |
|||||||||||
Current Year | Prior Year | ||||||||||
Assets | |||||||||||
Cash | $ | 176,000 | $ | 120,200 | |||||||
Accounts receivable | 101,000 | 83,000 | |||||||||
Inventory | 619,000 | 538,000 | |||||||||
Total current assets | 896,000 | 741,200 | |||||||||
Equipment | 367,300 | 311,000 | |||||||||
Accum. depreciation—Equipment | (164,000 | ) | (110,000 | ) | |||||||
Total assets | $ | 1,099,300 | $ | 942,200 | |||||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 111,000 | $ | 83,000 | |||||||
Income taxes payable | 40,000 | 31,100 | |||||||||
Total current liabilities | 151,000 | 114,100 | |||||||||
Equity | |||||||||||
Common stock, $2 par value | 606,400 | 580,000 | |||||||||
Paid-in capital in excess of par value, common stock | 217,600 | 178,000 | |||||||||
Retained earnings | 124,300 | 70,100 | |||||||||
Total liabilities and equity | $ | 1,099,300 | $ | 942,200 | |||||||
GOLDEN CORPORATION Income Statement For Current Year Ended December 31 |
||||||
Sales | $ | 1,852,000 | ||||
Cost of goods sold | 1,098,000 | |||||
Gross profit | 754,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 54,000 | ||||
Other expenses | 506,000 | 560,000 | ||||
Income before taxes | 194,000 | |||||
Income taxes expense | 38,800 | |||||
Net income | $ | 155,200 | ||||
Additional Information on Current Year Transactions
Solution
GOLDEN CORPORATION | ||
Cash flow Statement | ||
For the Year ended December 31 | ||
Cash Flow from Operating Activities: | ||
Net Income | $ 155,200.00 | |
Adjustments to reconcile net income to net cash provided by operations | ||
Income statement items not affecting cash | ||
Depreciation Expense | $ 54,000.00 | |
Changes in current assets and current liabilities | ||
Increase in Accounts Receivables | $ (18,000.00) | |
Increase in Inventory | $ (81,000.00) | |
Increase in Accounts payable | $ 28,000.00 | |
Increase in Income taxes payable | $ 8,900.00 | |
A. Cash Outflow from Operating Activities | $ 147,100.00 | |
cash flow from investing activities | ||
Purchase of Equipment | $ (56,300.00) | |
B.Net cash used by investing activities | $ (56,300.00) | |
Cash flows from Financing activities | ||
Payment of Dividend | $ (101,000.00) | |
Issue of Common Stock | $ 66,000.00 | |
C. Net cash Used in financing activities | $ (35,000.00) | |
(A+B+C) Net increase (Decrease) in cash and Cash Equivalent | $ 55,800.00 | |
Cash balance, December 31, prior year | $ 120,200.00 | |
Cash balance, December 31, current year | $ 176,000.00 |
.General notes for cash flow
Cash is increased when Current liability increase or Current asset
Decrease.
Cash is Decreased when Current liability Decrease or Current asset
Increase.
Depreciation or loss on sale of any asset is a non cash expense
hence it will be added to net income to get operating cash
Profit on sale of asset or investment is a non cash profit and
hence will be deducted from operating income.
Required information [The following information applies to the questions displayed below.] Golden Corp.'s current year income...
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, (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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the...
[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, (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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and...
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, (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. (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the...
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) all purchases of inventory are on Credit (1) 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...
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, (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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the...
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) all 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...
Required Information [The following information applies to the questions displayed below.) Golden Corp. 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. (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the...
Required information The following information applies to the questions displayed below.] Golden Corp., a merchandiser, recently completed its 2017 operations. 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 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 Corp.'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, (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...
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...