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Golden Corp., a merchandiser

Problem 12-5AA: Cash flows spreadsheet (indirect method) L.O. P1, P2, P3, P4
Golden Corp., a merchandiser, recently completed its 2008 operations. 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's balance sheets and income statement follow:

Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 12A.1 (attached) report operating activities under the indirect method.

Please explain which account in cash flow statement was affected by which entry.

** See ATTACHED file(s) for complete details **

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Problem 12-5AA: Cash flows spreadsheet (indirect method) L.O. P1, P2, P3, P4
Golden Corp., a merchandiser, ...

Solution Summary

This solution is comprised of a detailed explanation to prepare a complete statement of cash flows using a spreadsheet as in Exhibit 12A.1 (attached) report operating activities under the indirect method.

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