Typewritten answers only, please. No handwritten answers. Thank you. Golden Manu

Question

Typewritten answers only, please. No handwritten answers.

Thank you.

Golden Manufacturing Company started operations by acquiring $111,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $101,000 cash, had an expected useful life of five years, and had an estimated salvage value of $10,100. Golden Manufacturing earned $99,310 and $69,480 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation.

Prepare an income statements for 2018 and 2019. Use a vertical statements format. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

b-2. Prepare a balance sheets for 2018 and 2019. Use a vertical statements format. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format. (Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

Typewritten answers only, please. No handwritten answers.

Thank you.

Explanation / Answer

Thank You

Year Book value of the asset at the start of the year Rate of declining Blance Depreciation expense Accumuluted depreciation Book Value of asset at the end of the year 2018 101000 40% 40400 40400 60600 2019 60600 40% 24240 64640 36360 2020 36360 40% 14544 79184 21816 2021 21816 40% 8726.4 87910.4 13089.6 2022 13089.6 40% 2989.6 90900 10100 Golden manufacturing company Income Statement For the year ended 31 2018 2019 Sales Revenue 99310 69480 Less : Expenses Deprciation 40400 24240 Net Income 58910 45240 Golden manufacturing company Balance sheet As of December 31 2018 2019 Asset Current Asset Cash 109310 178790 Equipment 101000 101000 Less : Accumulated Depreciation 40400 64640 Equipement Net 60600 36360 Total Assets 169910 215150 Liabilities & Shareholder's Equity Common Stock 111000 111000 Retained Earnings 58910 104150 Total Liabilities & Shareholder's Equity 169910 215150 Golden manufacturing company Statement of Cash flows For the year ended 31 2018 2019 Cash flows from operating activities Net Income 58910 45240 Add : Depreciation 40400 24240 Cash flows from operating activities 99310 69480 Cash flows from Investing activites Purchase of equipment -101000 0 Cash flows from financing activities Issuance of common stock 111000 0 Net Change in cash 109310 69480 Add: Beginning balance 0 109310 Ending balance 109310 178790

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