2.50 points Problem 16-8AB Direct: Statement of cash flows LO P1, P3, P5 Golden

Question

2.50 points Problem 16-8AB Direct: Statement of cash flows LO P1, P3, P5 Golden Corp., a merchandiser, recently completed its 2015 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, 2015 and 2014 2015 2014 Assets Cash Accounts receivable Inventory S 165,884 S 111,510 76,995 509,760 88,472 581,098 Total current assets Equipment Accum. depreciation-Equipment 835,454 317,694 698,265 284,085 (97,350) 147,788) Total assets 1,005,360 885,000 Liabilities and Equity Accounts payable ncome taxes payable $ 66,354 $ 92,040 23,010 26,139 Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 92,493 115,050 634,200 212,375 66292 588,200 54,875 26,875 ‘ Total liabilities and equity $1,005,360 885,000

Explanation / Answer

Workings:

GOLDEN CORPORATION Statement of Cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities Cash receipts from customers 2408523 Cash paid for inventory purchases -1113424 Cash paid for other operating expenses -425872 Cash paid for income taxes -177693 Net cash provided by operating activities 691534 Cash Flows from Investing Activities Purchase of equipment -33609 Net cash used by investing activities -33609 Cash Flows from Financing Activities Issuance of Common stock (23000 x $4.50) 103500 Payment of cash dividends -707051 Net cash used by financing activities -603551 Net increase (decrease) in cash 54374 Cash balance at beginning of year 111510 Cash balance at end of year 165884

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.