Question

Required information Golden Corp., a merchandiser, recently completed its 2017 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. The company's balance sheets and income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets $ 177,000 121,300 84,000 539,000 744,300 312,000 (164,500 (110,500) $1,105,500 $ 945,800 102,500 620,500 900,000 370,000 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 $ 113,000 84,000 31,600 115,600 41,000 154,000 581,000 179,500 69,700 $1,105,500 $ 945, 800 618,000 209,000 124,500 Total liabilities and equity

Answer 1

GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flow from Operating Activities: Net Income Adiustments to reconcile net income to net Cash provided by operations: Depreciation expenses Accounts Receivables Increase Inventory Increase Accounts Pavable Increase Income Tax payable Increase Cash Flow from Operating activities S156,800 S 54,000 S (18,500) S (81,500) S 29,000 S 9,400 S (7,600) S 149,200 Cash Flow from Investing Activities Purchase of equipment Cash from Investing Activities S (58.000) S (58,000) Cash Flow from Financing Activities Isuue of Common stock Dividends Paid Cash flow from Financing Activities Net Increase or (Decrease) in Cash Cash balance Beginning of the year Cash balance at end of Year Working Notes Issue of Common stock 13,300 S5-66,500 S 66,500 S(102,000) S (35,500) S 55,700 S121,300 S177,000