Chapter 12 Homework A Saved 13 Required information [The following information applies to the questions displayed below.] points Golden Corp., a merchandiser, recently completed its 2018 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, Skipped eBook GOLDEN CORPORATION Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Print Assets $ 169,000 90,500 608,500 868,000 348,400 (160,500) $1,055,900 $ 112,500 76,000 531,000 719,500 304,000 (106, 500) $ 917,000 Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment References Total assets Liabilities and Equity Accounts payable Income taxes payable $ 76,000 27,600 97,000 33,000 130,000 Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 103,600 602,000 201,000 577,000 163,500 72,900 122,900 $ 917,000 Total liabilities and equity $1,055,900 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $1,817,000 1,091,000 726,000 $ 54,000 499, 000 Other expenses 553,000 173,000 29,000 $ 144,000 Income before taxes Income taxes expense Net income Additional Information on Year 2018 Transactions a. Purchased equipment for $44,400 cash. b. Issued 12,500 shares of common stock for $5 cash per share. c. Declared and paid $94,000 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.) Additional Information on Year 2018 Transactions a. Purchased equipment for $44,400 cash. b. Issued 12,500 shares of common stock for $5 cash per share. c. Declared and paid $94,000 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, 2018 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities: Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, 2017 Cash balance at December 31, 2018
