Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 169,ee0 112,500 76,000 531,000 719,500 304,000 ( ) (106,500) $1,055,900 917,000 90,580 608,500 868,000 348,400 160,500 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 $97,000 76,000 33,000 27,600 103,600 130,000 573,000 167,580 72.900 $1,055,900 $ 917,000 602,000 201,000 122,900 Total liabilities and equity GOLDEN CORPORATION Income Statenent Year Ended Sales Cost of goods sold Gross profit Operating expenses $1,817,0e0 1,991,000 726,000 Depreciation expense s 54,000 499,900 Other expenses Income before taxes Income taxes expense Net incone 553,000 173,000 29,000 $ 144,000 dditional Information on Year 2017 Transactions Required information 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, 2017 Cash flows from operating activities Net income $ 144,000 Adjustments to reconcile net income to net cash provided by operations Income taxes payable increase Depreciation expense 29,000 54,000 S 227,000 Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash 227.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Excel For Auditors

Authors: Bill Jelen, Dwayne K. Dowell

1st Edition

ISBN: 1932802169, 978-1932802160

More Books

Students also viewed these Accounting questions

Question

What is the basis of this problem?

Answered: 1 week ago

Question

Identify the different methods employed in the selection process.

Answered: 1 week ago

Question

Demonstrate the difference between ability and personality tests.

Answered: 1 week ago