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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.)

GOLDEN CORPORATION
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2017
Analysis of Changes
December 31, 2016 Debit Credit December 31, 2017
Balance sheetdebit balance accounts
Cash $125,700 $181,000
Accounts receivable 88,000
Inventory 543,000
Equipment 316,000
$1,072,700 $181,000
Balance sheetcredit balance accounts
Accumulated depreciationEquipment $112,500
Accounts payable 88,000
Income taxes payable 33,600
Common stock, $2 par value 585,000
Paid-in capital in excess of par value, common stock 185,500
Retained earnings 68,100
$1,072,700 $0
Statement of cash flows
Operating activities
Investing activities
Financing activities
$0 $0

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