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Golden Corporation'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, and (5) 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 $ 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
Accumulated 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 (excluding depreciation) 497,000
Depreciation expense 54,000
Income before taxes 167,000
Income taxes expense 26,200
Net income $ 140,800
Additional Information on Current Year Transactions
Purchased equipment for $41,000 cash.
Issued 12,300 shares of common stock for $5 cash per share.
Declared and paid $92,000 in cash dividends.
Answer is not complete.
GOLDEN CORPORATION
Statement of Cash Flows
For Current Year Ended December 31
Cash flows from operating activities Net incomeselected answer correct $140,800selected answer correct Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expenseselected answer correct 54,000selected answer correct Changes in current assets and current liabilities Increase in accounts receivableselected answer correct 13,500selected answer incorrect Increase in inventoryselected answer correct 76,500selected answer incorrect Increase in prepaid expensesselected answer incorrect not attempted Decrease in accounts receivableselected answer incorrect 13,500selected answer incorrect Decrease in taxes payableselected answer incorrect 4,400selected answer correct Net cash provided by operating activitiesselected answer correct $302,700
Cash flows from investing activities Cash received from stock issuanceselected answer incorrect 24,600selected answer incorrect not attempted not attempted Net cash provided by investing activitiesselected answer incorrect 24,600
Cash flows from financing activities: Cash received from stock issuanceselected answer correct 61,500selected answer correct Cash paid for cash dividendsselected answer correct 92,000selected answer incorrect Cash paid for equipmentselected answer incorrect 41,000selected answer incorrect Net cash provided by financing activitiesselected answer incorrect 194,500
Net increase (decrease) in cash $521,800
Cash balance at December 31, prior year 83,600selected answer incorrect
Cash balance at December 31, current year $605,400