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Required information [The following information applies to the questions displayed below.] Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all

Required information

[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 companys balance sheets and income statement follow.

GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016
2017 2016
Assets
Cash $ 169,000 $ 112,500
Accounts receivable 90,500 76,000
Inventory 608,500 531,000
Total current assets 868,000 719,500
Equipment 348,400 304,000
Accum. depreciationEquipment (160,500 ) (106,500 )
Total assets $ 1,055,900 $ 917,000
Liabilities and Equity
Accounts payable $ 97,000 $ 76,000
Income taxes payable 33,000 27,600
Total current liabilities 130,000 103,600
Equity
Common stock, $2 par value 602,000 573,000
Paid-in capital in excess of par value, common stock 201,000 167,500
Retained earnings 122,900 72,900
Total liabilities and equity $ 1,055,900 $ 917,000

GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017
Sales $ 1,817,000
Cost of goods sold 1,091,000
Gross profit 726,000
Operating expenses
Depreciation expense $ 54,000
Other expenses 499,000 553,000
Income before taxes 173,000
Income taxes expense 29,000
Net income $ 144,000

Additional Information on Year 2017 Transactions

Purchased equipment for $44,400 cash.

Issued 12,500 shares of common stock for $5 cash per share.

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
Adjustments to reconcile net income to net cash provided by operations:
Cash flows from investing activities:
Cash flows from financing activities:
Net increase (decrease) in cash
Cash balance at beginning of year
Cash balance at end of year

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