ASAP/ PLEASE fix/ finish XAnswer is not complete GOLDEN CORPORATION Statement of
ID: 2542127 • Letter: A
Question
ASAP/ PLEASE fix/ finish
XAnswer is not complete GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2013 Cash flows from operating activities $112,60 Net Income Adjustments to reconcile net income to net cash provided by operations 19,50 47,00 Accounts payable increase Depreciation expense Income taxes payable increase Accounts receivable increase Inventory increase (18,640 X (12,000V (38,100 Net cash provided by operating activities 110,360 Cash flows from investing activities Cash paid for equipment 38,10 38,100 Net cash used in investing activities Cash flows from financing activities 51,00 68,000 34,00 Cash received from stock issuance Cash paid for cash dividends 17,000 Net cash used in financing activities Net increase (decrease) in cash Cash balance at beginning of vear Cash balance at end of year 165,460 165,460Explanation / Answer
Golden Corporation
Statement of Cash Flows
For the year Ended December 31, 2013 (Amounts in $)
Working Notes:-
1) It is given in the requirement of the question that "Amounts to be deducted should be indicated with a minus sign". Therefore minu sign is used in the answer tabs where deductions are shown.
2) Increase in income taxes payable will be equal to closing balance of income taxes payable ($35,000) less opening balance of income taxes payable ($28,500) (i.e. $35,000 - $28,500 = $6,500). This amount of $6,500 will be added to net income beacause it is an increase in current liability.
Cash Flows from Operating Activities: Net Income 112,600 Adjustments to reconcile net income to net cash provided by operations: Accounts Payable Increase (94,000 - 74,500) 19,500 Depreciation expense 47,000 Income Taxes payable Increase (35,000 - 28,500) 6,500 Accounts Receivable Increase (90,000 - 78,000) -12,000 Inventory Increase (601,500 - 540,000) -61,500 Net Cash provided by Operating Activities (A) 112,100 Cash flows from Investing Activities: Cash paid for Equipment -38,100 Net cash used in investing activities (B) -38,100 Cash flows from Financing Activities: Cash received from stock issuance (8,500 shares*$6 per share) 51,000 Cash paid for cash dividends -68,000 Net cash used in financing activities (C) -17,000 Net Increase (decrease) in cash (D = A+B+C) 57,000 Cash Balance at the beginning of year (E) 121,000 Cash Balance at the end of year (D+E) 178,000