Refer to the information reported about golden corporation. Prepare a complete statement of cash flows; report operating activities under the indirect method. Identify the debits and credits in the Analysis of changes column with letters that correspond to the following list of transactions and events.
A. Net income was 136,000
B. Accounts receivable increased.
C. Merchandise inventory increased.
D. Accounts payable increased.
E. Income taxes payables increased.
F. Depreciation expense was 54,000.
G. Purchased equipment for 36,000 cash.
H. Issued 12,000 shares at $5 cash per share.
I. Declared and paid $89,000 of cash dividends.
Golden Corporation Comparative Balance Sheets Dec. 31, 2013 and 2012
2013 2012
Assets Cash $164,000 $107,000
Accounts receivable 83,000 71,000
Merchandise inventory 601,000 526,000
Equipment 335,000 299,000
Accum. depreciation - Equipment (158,000) (104,000)
Total assets $1,025,000 $899,000
Liabilities and Equity Accounts payable $ 87.000 $ 71,000
Income taxes payable 28,000 25,000
Common stock, $2 par value 592,000 568,000
Paid-in capital in excess of par value, common stock 196,000 160,000
Retained earnings 122,000 75,000
Total liabilities and equity $1,025,000 $899,000
Golden Corporation Income Statement For Year Ended December 31, 2013
Sales $1,792,000
Cost of goods sold 1,086,000
Gross profit 706,000
Operating expenses (including Depreciation expense $54,000 and Other expenses $494,000) $548,000
Income before taxes 158,000
Income taxes expense 22,000
Net income $136,000