1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rosijanka [135]
3 years ago
14

Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) a

ll 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.

Required:
Prepare a complete statement of cash flows: report its cash inflows and cash outflows from operating activities according to the indirect method.
Business
1 answer:
Alinara [238K]3 years ago
5 0

Answer:

Golden Corp.

Statement of Cash Flows for the year ended December 31, using the indirect method:

Net Income before taxes          $167,000

Add non-cash expenses:

Depreciation                                 54,000

Adjustment of current assets:

Accounts receivable                    (13,500)

Inventory                                     (76,500)

Adjustment of current liabilities:

Accounts payable                        19,000

Income taxes payable                  (4,400)

Net Cash Flow from operations                  $145,600

Financing Activities:

Common Stock                $61,500

Dividend paid                    92,000

Net Cash Flow from financing activities    $153,500          

Investing Activities:

Equipment purchase       $41,000

Net Cash Flow from investing activities      $41,000

Net Cash Flow                                            $340,100

Explanation:

The Golden Corp.'s statement of cash flows depicts the flow of cash under three main activity headings: operating, financing, and investing.  There are two methods under which Golden Corp. can prepare the statement.  They include the indirect method, which starts from the net income, adjusts the non-cash expenses and the changes in working capital, and the direct method, which shows the cash inflows and outflows for each cash flow item.

You might be interested in
Mr.Akhil (55 years) paid mediclaim for self and family Rs.40,000 and for parents (80 years) Rs.60,000. What will be the deductio
Dominik [7]

In order to claim the deduction under Section 80D, the expenditure needs to be made in any means other than cash. Although the expenditure on preventive health check-ups is allowed to be incurred in cash. The deduction for the following expenses are available under section 80D:

A. Medical insurance premium paid for yourself & your family. Rs. 25,000 Rs. 50,000 (in case of senior citizen)

B. Medical insurance premium paid for your parents. Rs. 25,000 Rs. 50,000 (in case of senior citizen)

C. Expenditure on preventive health check-up. Rs.5,000

D. Medical expenditure of senior citizens or super senior citizens. Rs.50,000

E. Contribution to CGHS/notified scheme. Rs.25,000 Rs.50,000(in case of senior citizen)

Maximum amount of deduction (A+ B+C+D+E) Non-senior citizens(Self & family and Parents) Senior Citizens (Self & family and Parents) Self & family (Non-senior citizens)Parents(Senior Citizens) Rs.25000+Rs.25000= Rs.50,000

Rs.50000+Rs.50000=Rs.1,00,000

Rs.25000+Rs.50000=Rs.75,000

Hence, the deduction available is his total paid minus expected paid which is Rs. 40000 + Rs. 60000 = Rs. 100000 - (A+ B+C+D+E) = Rs. 150000

<h3>What is Section 80D?</h3>

Section 80D permits the deduction for money spent on taking care of one's health and health insurance. Section 80D claims great significance in one's tax planning and personal finance.

Therefore, the correct answer is as given above

learn more about Section 80D: brainly.com/question/14585764

#SPJ1

3 0
2 years ago
The following information is available for Patrick Products for the year: Budgeted sales during the year 5,000 units Actual sale
cupoosta [38]

Answer:

$125,000 Adverse variance as the cost actually incurred is higher.

Explanation:

The first step here is to find the Flexed Variable Overhead Cost by using the unitary method:

Budgeted overhead cost for 10,000 budgeted hrs = $2500,000

Budgeted overhead cost for 1 budgeted hrs = $2500,000 / 10000 bud. hrs

Budgeted overhead cost for 1 budgeted hrs = $250 per standard hr

And as we know that

Flexed Variable Overhead Budget = Actual Units * Budgeted overhead cost for standard hr

By simply putting values we have:

Flexed Variable Overhead Budget = 9000 hours * $250 per standard hr

= $2,2500,000

Now we will find the Flexible-budget Variable Overhead Variance by taking the difference of Variable overhead flexible budget and Actual Variable Overhead.

Flexible-budget Variable Overhead Variance = Variable overhead flexible budget - Actual Variable Overhead

By putting the values we have:

Flexible-budget Variable Overhead Variance = $2,2500,000 - $2,375,000

= $125,000 Adverse variance as the cost actually incurred is higher.

6 0
3 years ago
Read 2 more answers
Assume that the following events occurred at a division of Generic Electric for March of the current year:
Crank

Answer:

$192 million; $153.60 million; $38.40 million

Explanation:

Given that,

Direct material purchased = $80 million

Direct labor costs = $51 million

Manufacturing overhead = $77 million

Percent of the work-in-process completed = 80%

(1) Transfers-In:

= Direct materials + Direct labor costs + Manufacturing overhead

= (80% × $80 million) + $51 million + $77 million

= $64 million + $51 million + $77 million

= $192 million

(2) Transfer-out:

= Transfers-In × percent of the work-in-process completed

= $ 192 million × 80 %

= $ 153.60 million

(3) Ending Balance:

= Transfers-In - Transfer-out

= $192 million - $ 153.60 million

= $38.40

6 0
3 years ago
What factor counts the least in calculating a person's credit score?
aleksandrvk [35]

Rent and utility payments: In most cases, your rent payments and your utility payments are not reported to the credit bureaus, so they do not count toward your score.

4 0
2 years ago
One key for sport organizations to use market segmentation effectively involves integrating the strategy with a DBM or CRM syste
Ede4ka [16]

Answer:

TRUE.

Explanation:

One key for sport organizations to use market segmentation effectively involves integrating the strategy with a DBM or CRM system to pinpoint which segments can be contacted. Both DBM and CRM systems can give an organization very valid and reliable information about their customers which then managers can use to form patterns and analyse trends and buying habits of the customers. This information can be easily used for effective targeting. Managers can easily know which segments they should target and how sales can be increased in that particular segment. What offers should be sent to that specific segment.

4 0
3 years ago
Other questions:
  • A company is considering producing some new gameboy electronic games. based on past records, management believes that there is a
    10·1 answer
  • North america is about 80% urbanized. this mean that about 75% of north american
    9·1 answer
  • A __________ bond gives the issuer an option to retire the bond before maturity at a specific price after a specific date.
    13·1 answer
  • Your client invested $10,000 in an interest-bearing promissory note earning an 11% annual rate of interest, compounded monthly.
    10·1 answer
  • Lee is the executive of a car manufacturer. Lee decides the appearance of one of his car designs outweighs the desire to make th
    14·1 answer
  • You use u.s. currency to pay the owner of a restaurant for a delicious meal. the currency
    9·1 answer
  • Sunglasses Unlimited Company manufactures sunglasses. Following is a list of costs the company incurred during May (Click the ic
    5·1 answer
  • Bedrock Company reported a December 31 ending inventory balance of $416,000. The following additional information is also availa
    6·1 answer
  • What are capital gains on an investment.
    15·1 answer
  • What is the duty of the designated rbs certified person at a non-profit organization's temporary alcohol event?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!