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 $ 180,000 107,000 625,000 912,000 378, 100 (166,000) $1,124,100 $ 124,600 87,000 542,000 753,600 315,000 (112,000) $ 956, 600 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 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 119,000 44,000 163,000 $ 87,000 33, 100 120,100 624,000 212,000 125, 100 $1,124, 100 584,000 184,000 68,500 $ 956,600 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,872,000 Cost of goods sold 1, 102,000 Gross profit 770,000 Operating expenses GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,872,000 Cost of goods sold 1, 102,000 Gross profit 770,000 Operating expenses Depreciation expense $ 54,000 Other expenses 510,000 564,000 Income before taxes 206,000 Income taxes expense 44,400 Net income $ 161,600 dditional Information on Year 2017 Transactions Purchased equipment for $63,100 cash. Issued 13,600 shares of common stock for $5 cash per share. Declared and paid $105,000 in cash dividends. 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 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 $ 180,000 107,000 625,000 912,000 378, 100 (166,000) $1,124,100 $ 124,600 87,000 542,000 753,600 315,000 (112,000) $ 956, 600 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 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 119,000 44,000 163,000 $ 87,000 33, 100 120,100 624,000 212,000 125, 100 $1,124, 100 584,000 184,000 68,500 $ 956,600 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,872,000 Cost of goods sold 1, 102,000 Gross profit 770,000 Operating expenses GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,872,000 Cost of goods sold 1, 102,000 Gross profit 770,000 Operating expenses Depreciation expense $ 54,000 Other expenses 510,000 564,000 Income before taxes 206,000 Income taxes expense 44,400 Net income $ 161,600 dditional Information on Year 2017 Transactions Purchased equipment for $63,100 cash. Issued 13,600 shares of common stock for $5 cash per share. Declared and paid $105,000 in cash dividends. 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
