Typewritten answers only, please. No handwritten answers. Thank you. Golden Manufacturing Company started operations by acquiring...

Typewritten answers only, please. No handwritten answers.

Thank you.

Golden Manufacturing Company started operations by acquiring $111,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $101,000 cash, had an expected useful life of five years, and had an estimated salvage value of $10,100. Golden Manufacturing earned $99,310 and $69,480 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation.

Prepare an income statements for 2018 and 2019. Use a vertical statements format. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

GOLDEN MANUFACTURING COMPANY
Income Statements
For the Year Ended December 31
	2018	2019

b-2. Prepare a balance sheets for 2018 and 2019. Use a vertical statements format. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

GOLDEN MANUFACTURING COMPANY
Balance Sheets
As of December 31
	2018	2019
Assets



Total Assets	$0	$0
Stockholders’ equity



Total stockholders’ equity	$0	$0

b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format. (Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

GOLDEN MANUFACTURING COMPANY
Statements of Cash Flows
For the Year Ended December 31
	2018	2019
Cash flows from operating activities

Cash flows from investing activities

Cash flows from financing activities

Net change in cash

Ending cash balance	$0	$0

Typewritten answers only, please. No handwritten answers.

Thank you.

Solutions

Expert Solution




Year	Book value of the asset at the start of the year	Rate of declining Blance	Depreciation expense	Accumuluted depreciation	Book Value of asset at the end of the year
2018	101000	40%	40400	40400	60600
2019	60600	40%	24240	64640	36360
2020	36360	40%	14544	79184	21816
2021	21816	40%	8726.4	87910.4	13089.6
2022	13089.6	40%	2989.6	90900	10100


	Golden manufacturing company
	Income Statement
	For the year ended 31
		2018	2019
	Sales Revenue	99310	69480
	Less : Expenses
	Deprciation	40400	24240
	Net Income	58910	45240


	Golden manufacturing company
	Balance sheet
	As of December 31
		2018	2019
	Asset
	Current Asset
	Cash	109310	178790

	Equipment	101000	101000
	Less : Accumulated Depreciation	40400	64640
	Equipement Net	60600	36360

	Total Assets	169910	215150

	Liabilities & Shareholder's Equity

	Common Stock	111000	111000
	Retained Earnings	58910	104150

	Total Liabilities & Shareholder's Equity	169910	215150


	Golden manufacturing company
	Statement of Cash flows
	For the year ended 31
		2018	2019
	Cash flows from operating activities
	Net Income	58910	45240
	Add : Depreciation	40400	24240
	Cash flows from operating activities	99310	69480

	Cash flows from Investing activites
	Purchase of equipment	-101000	0

	Cash flows from financing activities
	Issuance of common stock	111000	0

	Net Change in cash	109310	69480
	Add: Beginning balance	0	109310
	Ending balance	109310	178790

ekkarill92 answered 8 months ago

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