Question

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 accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year 124,600 87000 542.000 180,000 107,000 625,000 912,000 378,100 (166.000) $1,124,100 315,000 (112,000) $ 956,600 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. 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 Retained earnings Total liabilities and equity $ $ 119,000 44,000 163,000 87,000 33, 100 120,100 611,200 224,800 125,100 1,124,100 584,000 184,000 68,500 $ 956,600 EN Co GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,872,000 Cont of goods sold 1,102,000 Gross profit 770,000 Operating expenses Depreciation expense $ 54,000 Other expenses 510,000 564,000 Income before taxes 206,000 Income taxes expense 44,400 Net Income $ 161,600

Answer 1

GOLDEN CORPORATION
Cash flow Statement
For the Year ended December 31,Current year
Cash Flow from Operating Activities:
Net Income		$ 161,600
Adjustments to reconcile net income to net cash provided by operations
Income statement items not affecting cash
Depreciation Expense	$ 54,000
Changes in current assets and current liabilities
Increase in Accounts Receivables	-$ 20,000
Increase in Inventory	-$ 83,000
Increase in Accounts payable	$ 32,000
Increase in Income taxes payable	$ 10,900
		-$ 6,100
A. Cash Outflow from Operating Activities		$ 155,500
cash flow from investing activities
Purchase of Equipment	-$ 63,100
B.Net cash used by investing activities		-$ 63,100
Cash flows from Financing activities
Payment of Dividend	-$ 105,000
Issue of Common Stock	$ 68,000
C. Net cash Used in financing activities		-$ 37,000
(A+B+C) Net increase (Decrease) in cash and Cash Equivalent		$ 55,400
Cash balance, December 31, prior year		$ 124,600
Cash balance, December 31, current year		$ 180,000