Question

Golden Corp. a merchandiser, recently completed its 2017 operations. For the year, ( t) al sales are credit sales, P, 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 corner Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and income statement follow.

Answer 1

GOLDEN CORPORATION
Statement of Cash flows (Indirect Method)
for the year ended December 31,2017
Cash flows from Operating activities
Net income		$137,600.00
Adjustments to reconcile net income to net cash provided by operations
Depreciation expense	$54,000.00
Increase in Accounts Receivables	-$12,500.00
Increase in Inventory	-$75,500.00
Increase in Accounts Payable	$17,000.00
Increase in Income Tax payable	$3,400.00
		-$13,600.00
Net Cash used for Operating Activities		$124,000.00
Cash flows from Investing activities
Purchase of equipment	-$37,600.00
Net Cash used for Investing Activities		-$37,600.00
Cash flow from Financing activities
Issue of Common stock	$60,500.00
Dividend Paid	-$90,000.00
Net cash available from Financing activities		-$29,500.00
Net Increase (decrease) in Cash		$56,900.00
Add : Cash balance at the beginning of year		$108,100.00
Cash balance at the end of year		$165,000.00