1.Required information

[The following information applies to the questions displayed below.] Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. 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.

GOLDEN CORPORATION Comparative Balance Sheets December 31
	Current Year						Prior Year
Assets
Cash		$	169,000					$	112,500
Accounts receivable			90,500						76,000
Inventory			608,500						531,000
Total current assets			868,000						719,500
Equipment			348,400						304,000
Accum. depreciationEquipment			(160,500	)					(106,500	)
Total assets		$	1,055,900					$	917,000
Liabilities and Equity
Accounts payable		$	97,000					$	76,000
Income taxes payable			33,000						27,600
Total current liabilities			130,000						103,600
Equity
Common stock, $2 par value			598,000						573,000
Paid-in capital in excess of par value, common stock			205,000						167,500
Retained earnings			122,900						72,900
Total liabilities and equity		$	1,055,900					$	917,000

GOLDEN CORPORATION Income Statement For Current Year Ended December 31
Sales				$	1,817,000
Cost of goods sold					1,091,000
Gross profit					726,000
Operating expenses
Depreciation expense	$	54,000
Other expenses		499,000			553,000
Income before taxes					173,000
Income taxes expense					29,000
Net income				$	144,000

Additional Information on Current Year Transactions

1. Purchased equipment for $44,400 cash.
2. Issued 12,500 shares of common stock for $5 cash per share.
3. Declared and paid $94,000 in cash dividends.

Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)

2.

Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $53,900; total assets, $249,400; common stock, $86,000; and retained earnings, $42,976.)

CABOT CORPORATION Income Statement For Current Year Ended December 31
Sales	$	449,600
Cost of goods sold		297,550
Gross profit		152,050
Operating expenses		99,400
Interest expense		4,800
Income before taxes		47,850
Income tax expense		19,276
Net income	$	28,574

CABOT CORPORATION Balance Sheet December 31
Assets				Liabilities and Equity
Cash	$	20,000		Accounts payable	$	15,500
Short-term investments		9,600		Accrued wages payable		5,000
Accounts receivable, net		33,000		Income taxes payable		4,700
Merchandise inventory		36,150		Long-term note payable, secured by mortgage on plant assets		67,400
Prepaid expenses		3,100		Common stock		86,000
Plant assets, net		148,300		Retained earnings		71,550
Total assets	$	250,150		Total liabilities and equity	$	250,150

Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)

3.

Franklin Co. reported the following year-end data:

Net income	$	229,000
Annual cash dividends of per share	$	3
Market price per (common) share	$	150
Earnings per share	$	15

Compute the (a) price-earnings ratio and (b) dividend yield.

• Price Earnings Ratio
• Dividend Yield