80.2K

Verified Solution

Link Copied!

Use the following information for the Problems below. [The following information applies to the questions displayed below.] 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 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities $ 178,000 104, eee 622,eee 904, eee 372,780 (165,000) $1,111,780 $ 122,400 85, eee 540, eee 747, 480 313,000 (111, eee) $ 949,488 $ $ 115, eee 42,00 157,000 85,000 32, 100 117, 100 157, e80 117,100 LOA yeyou Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 620,000 210,000 124,700 $1,111,700 582, eee 181, eee 69,300 $ 949,400 $1,862,000 1,100,000 762,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 Other expenses 508,000 Income before taxes Income taxes expense Net income 562,000 200,000 41,600 158, 400 $ Check Problem 12-6A Indirect: Statement of cash flows LO P1, P2, P3 Additional Information on Year 2017 Transactions a. Purchased equipment for $59.700 cash. b. Issued 13,400 shares of common stock for $5 cash per share. c. Declared and paid $103,000 in cash dividends. Required: Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the Indirect method. (Amounts to be deducted should be indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Net income $ 158,4001 Adjustments to reconcile net income to net cash provided by operations: Accounts receivable increase (19,000) (R200011 GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Net income | $ 158,400 Adjustments to reconcile net income to net cash provided by operations: Accounts receivable increase (19,000) Inventory increase (82,000) Accounts payable increase 30,000 Income taxes payable increase 9,900 Depreciation expense 54,000 151,300 Net cash provided by operating activities Cash flows from investing activities: (59,700) Required information $ 151,300 Net cash provided by operating activities Cash flows from investing activities: (59,700) (59,700) Cash flows from financing activities: Cash paid for cash dividends Net cash used in financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 0 91,600 $ $ 91,600

Answer & Explanation Solved by verified expert

See Answer