Golden Corp.’s current year income statement, comparative balance sheets, and additional information follow. For the year,…

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

$
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

Accum. 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

Depreciation expense
$
54,000

Other expenses

497,000

551,000

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.

GOLDEN CORPORATION

Statement of Cash Flows

For Current Year Ended December 31

Cash flows from operating
activities

Net income
$140,800

Adjustments to reconcile net income to
net cash provided by operations:

Depreciation expense
54,000

$194,800

Cash flows from investing
activities

0

Cash flows from financing
activities:

0

Net increase (decrease) in cash
$194,800

Cash balance at December 31, prior
year

Cash balance at December
31, current year
$194,800