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 company's balance sheets and income statement follow. GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 $ 168,000 89,000 607,000 864,000 345, 700 (160,000) $1,049,700 $ 111,400 75,000 530,000 716,400 303,000 (106,000) $ 913,400 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Tot current liabilit Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 95,000 32,000 127,000 75,000 27,100 102,100 600,000 200,000 122,700 $1,049,700 572,000 166,000 73,300 $ 913, 400 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,812,000 Cost of goods sold 1,090,000 Gross profit 722,000 Operating expenses Depreciation expense $ 54,000 Other expenses 498,000 552,000 Theme ha fava avae 17 Ann For Year Ended December 31, 2017 Sales $1,812,000 Cost of goods sold 1,090,000 Gross profit 722,000 Operating expenses Depreciation expense $ 54,000 Other expenses 498,000 552,000 Income before taxes 170,000 Income taxes expense 27,600 Net income $ 142,400 ional Information on Year 2017 Transactions rchased equipment for $42,700 cash. ued 12,400 shares of common stock for $5 cash per share. clared and paid $93,000 in cash dividends. red: re a complete statement of cash flows; report its cash inflows and cash outflows from ting activities according to the indirect method. (Amounts to be deducted should be ited with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 flows from operating activities ustments to reconcile net income to net cash provided by operations: "y Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating 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
