Question
Required information Use the following information for the Problems below. Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales
Required information
Use the following information for the Problems 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 | $ | 181,000 | $ | 125,700 | |||
Accounts receivable | 108,500 | 88,000 | |||||
Inventory | 626,500 | 543,000 | |||||
Total current assets | 916,000 | 756,700 | |||||
Equipment | 380,800 | 316,000 | |||||
Accum. depreciationEquipment | (166,500 | ) | (112,500 | ) | |||
Total assets | $ | 1,130,300 | $ | 960,200 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 121,000 | $ | 88,000 | |||
Income taxes payable | 45,000 | 33,600 | |||||
Total current liabilities | 166,000 | 121,600 | |||||
Equity | |||||||
Common stock, $2 par value | 626,000 | 585,000 | |||||
Paid-in capital in excess of par value, common stock | 213,000 | 185,500 | |||||
Retained earnings | 125,300 | 68,100 | |||||
Total liabilities and equity | $ | 1,130,300 | $ | 960,200 | |||
GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 | |||||
Sales | $ | 1,877,000 | |||
Cost of goods sold | 1,103,000 | ||||
Gross profit | 774,000 | ||||
Operating expenses | |||||
Depreciation expense | $ | 54,000 | |||
Other expenses | 511,000 | 565,000 | |||
Income before taxes | 209,000 | ||||
Income taxes expense | 45,800 | ||||
Net income | $ | 163,200 | |||
Problem 16-7AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4
Additional Information on Year 2017 Transactions
Net income was $163,200.
Accounts receivable increased.
Inventory increased.
Accounts payable increased.
Income taxes payable increased.
Depreciation expense was $54,000.
Purchased equipment for $64,800 cash.
Issued 13,700 shares at $5 cash per share.
Declared and paid $106,000 of cash dividends.
Required: Prepare a complete statement of cash flows using a spreadsheet; report operating activities under the indirect method. (Enter all amounts as positive values.)
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