Question

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 Current Year Prior Year $ 169,000 90,500 608,500 868,000 30, 400 (160,500) $1,855,900 $ 112,500 25,000 531, 719,500 304,000 (106,500) $ 917,000 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 value, common stock Hetained earnings Total liabilities and equity $ 97,000 33,00 110,000 76,899 27,600 103,600 $98.000 205,eee 122,90e $1,055,90 573,000 167,500 72,900 $917.00 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Soles Cost of goods sold Gross profit Operating expenses $1.817.000 1,091,000 726,000

Answer 1

Answer:-

GOLDEN CORPORATION Statement of Cash Flow For current year ended December 31 A.Cash flow from operating activities: Net Income Adjustment for: Depreciation Income tax expense Operating profit before working capital change Adjustment for: Increase in Account receivable Increase in Inventory Increase in Account payable Cash generated from operation Less: Income tax paid Net Cash Flow from / (used in) operating activities B. Cash Flow From Investing Activities: Equipment purchased Net Cash Flow from / (used in) investing activities C. Cash Flow From Financing Activities: Issue of shares Dividend paid Net Cash Flow from / (used in) financing activities Net increase / (decrease) in cash and cash equivalents (A+B+C) Cash and cash equivalent at the beginning of the year Cash and cash equivalent at the end of the year $ 144,000 54,000 29,000 227,000 (14,500) (77,500) 21,000 156,000 23,600 132,400 (44,400) (44,400) 62,500 (94,000) (31,500) 56,500 112,500 $ 169,000

Calculation of income tax paid:

Beginning income tax payable balance $27,600

Add: Income tax expense charged             $29,000

Less: Ending income tax payable balance     $33,000

          Income tax paid during the year           $23,600