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GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,877,000 Cost of goods sold 1,103,000 Gross profit 774,000 Operating expenses Depreciation expense $ 54,000 Other expenses 511,000 565,000 Income before taxes 209,000 Income taxes expense 45,800 Net income $ 163,200 Additional Information on Current Year Transactions a. Purchased equipment for $64,800 cash. b. Issued 13,700 shares of common stock for $5 cash per share. c. Declared and paid $106,000 in cash dividends. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 181,000 108,500 626,500 916,000 380,800 (166,500) $1,130,300 $ 125,700 88,000 543,000 756,700 316,000 (112,$00) $ 960,200 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ $ 121,000 45,000 166,000 88,000 33,000 121,600 612,400 226,600 125,300 $1,130,300 585,000 185, $00 68,100 $ 960,200 GULDEN CORPORATIUN Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income $ 163,200 Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 54,000 Accounts receivable increase (20,500) Inventory increase (83,000) Accounts payable increase 11,400 Income taxes payable increase 67,000 Cash paid for cash dividends $ 192,100 Cash flows from investing activities 0 Cash flows from financing activities: 0 $ 192,100 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 192,100

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