Required information Use the following information for the Problems below. [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 Assets $ 122,400 85,000 Cash 178,000 Accounts receivable 104,000 In ventory Total current assets 622,000 904,000 540,000 747,400 313,000 Equipment Accum. depreciation-Equipment 372,700 (165,000) (111,000) $ 949,400 Total assets $1,111,700 Liabilities and Equity Accounts pa yable Income taxes payable $ 85,000 115,000 42,000 32, 100 Total current liabilities 117, 100 157,000 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 582,000 620,000 210,000 181,000 124,700 69,300 $ 949,400 Total liabilities and equity $1,111,780 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 $1,862,000 1, 100,000 762,000 Sales Cost of goods sold Gross profit Retained earnings 124,700 69,300 $ 949,400 Total liabilities and equity $1,111,700 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,862,000 1, 100,000 762,000 Cost of goods sold Gross profit Oper ating expenses Depreciation expense Other expenses $ 54,000 508,000 562,000 200,000 41,600 $ 158,400 Income before taxes Income taxes expense Net income Problem 12-6A Indirect: Statement of cash flows LO P1, P2, P3 Additional Information on Year 2017 Transactions a. Purchased equipment for $59,700 cash. b. Issued 13,400 shares of common stock for $5 cash per share. c. Declared and paid $103,000 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 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
