Question

Required Information (The following information applies to the questions displayed below.) Golden Corps 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 180,000 107,000 625,000 912,000 378, 100 166,000) $1,124,100 $ 124,600 87,000 542,000 753,600 315,000 (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, 92 par value Paid in capital in excess of par value, common stock Retained earnings Total liabilities and equity Liabilities and $ $ 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 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,872,000 Coat 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 expendo 44,400 Not income $ 161,600

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Answer 1

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Part a
	Balance					Balance
Item	Prior	Debit		Credit		Current
Cash	$       124,600	$   1,920,000		$   1,864,600		$       180,000
Accounts Receivable	$         87,000	$   1,872,000	Sale	$   1,852,000	Balance-Coll	$       107,000
Inventory	$       542,000	$   1,185,000	Balance-Pur	$   1,102,000	COGS	$       625,000
Buildings and Equipment	$       315,000	$         63,100				$       378,100
	$   1,068,600	$   5,040,100		$   4,818,600		$   1,290,100
Accumulated Depreciation	$       112,000			$         54,000	Dep	$       166,000
Accounts Payable	$         87,000	$   1,153,000	Balance-Payment	$   1,185,000	Purchase	$       119,000
Income Tax Payable	$         33,100	$         33,500	Payment	$         44,400	Income Tax	$         44,000
Common Stock	$       584,000			$         27,200	13,600*$2	$       611,200
Additional paid in capital	$       184,000			$         40,800	13,600*$3	$       224,800
Retained Earnings	$         68,500	$       105,000		$       161,600	Net Income	$       125,100
	$   1,068,600	$   1,291,500		$   1,513,000		$   1,290,100
Part b
Cash Flows from Operating Activities:
Net Income		$       161,600
Adjustments for noncash items:
Included in Income:
Depreciation Expense		$         54,000
Changes in operating assets and liabilities:
Increase in Accounts Receivable		$       (20,000)
Increase in Inventory		$       (83,000)
Increase in Income tax paybale		$         10,900
Increase in Accounts Payable		$         32,000
Net Cash Provided by Operating Activities			$                         155,500
Cash Flows from Investing Activities:
Purchase of Buildings and Equipment		$       (63,100)
Net Cash Used in Investing Activities			$                         (63,100)
Cash Flows from Financing Activities:
Dividends Paid		$     (105,000)
Common Stock		$         27,200
Additional Paidin capital		$         40,800
Net Cash Received from financing activities			$                         (37,000)
Net Decrease in Cash			$                           55,400
Cash Balance at Beginning of Year			$                         124,600
Cash Balance at End of Year			$                         180,000