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ACC- Golden Corporation Solution

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Question;Golden Corp., a;merchandiser, recently completed its 2013 operations. 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. The company?s balance sheets;and income statement follow.;GOLDEN CORPORATION;Comparative Balance Sheets;December 31, 2013 and 2012;2013;2012;Assets;Cash;$;163,000;$;133,000;Accounts;receivable;83,000;72,000;Merchandise;inventory;600,000;515,000;Equipment;350,000;215,000;Accum.;depreciation?Equipment;(157,000);(100,000);Total;assets;$;1,039,000;$;835,000;Liabilities;and Equity;Accounts;payable;$;136,000;$;45,000;Income;taxes payable;28,000;25,000;Common;stock, $2 par value;588,000;562,000;Paid-in;capital in excess of par value, common stock;203,000;164,000;Retained;earnings;84,000;39,000;Total;liabilities and equity;$;1,039,000;$;835,000;GOLDEN CORPORATION;Income Statement;For Year Ended December 31, 2013;Sales;$;1,794,000;Cost of;goods sold;1,087,000;Gross;profit;707,000;Operating;expenses;Depreciation;expense;$;57,000;Other;expenses;499,000;556,000;Income;before taxes;151,000;Income;taxes expense;21,000;Net income;$;130,000;Additional Information;on Year 2013 Transactions;a.;Purchased equipment;for $135,000 cash.;b.;Issued 13,000 shares;of common stock for $5 cash per share.;c.;Declared and paid;$85,000 in cash dividends.;Required;Prepare a complete;statement of cash flows, report its cash inflows and cash outflows from;operating activities according to the indirect method.(Amounts to be deducted should be indicated with;a minus sign.)

 

Paper#42158 | Written in 18-Jul-2015

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