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 company's balance sheets and income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 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 $ 177,000 121,300 84,000 620,500539,000 744,300 312,000 102,500 900,000 370,000 64,500) (110,500) $1,105,500 945,800 $ 113,000 84,000 31,600 1,000 154,000 115.500 581,000 179,500 124,50069 700 $1,105,500 945,800 618,000 209,000 GOLDEN CORPORATION Income Statement Por Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,857,000 1,099,000 758,000 Depreciation expense 54,000 507,000 561,000 197,00 40,200 Other expenses Income before taxes Income taxes expense Net income $ 156,800 Problem 16-7AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Additional Information on Year 2017 Transactions a. Net income was $156,800. b. Accounts receivable increased c. Inventory increased. d. Accounts payable increased e. Income taxes payable increased f. Depreciation expense was $54,000. g. Purchased equipment for $58,000 cash. h. Issued 13,300 shares at $5 cash per share. i. Declared and paid $102,000 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 sheet-debit balance accounts Cash 121,300 84,000 539,000 312,000 1,056,300 177,000 Accounts receivable Equipment 177,000 Balance sheet-credit balance accounts Accumulated depreciation-Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 110,500 84,000 31,600 581,000 179,500 69,700 1,056,300 Statement of cash flows Operating activities Investing activities Financing activities Required information Use the following information for the Problems below. Forten Company, a merchandiser, recently completed its calendar-year 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, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement and balance sheets follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2016 Asset Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings $ 55,90077,500 54,625 255,800 1,975 389,900 112,000 71,810 281,656 1,250 410,616 153,500 38,625 48,000 $ 525,491 453,900 $57,141 120,675 6,800 127,475 52,750 180,225 11,200 68,341 131,341 170,750 181,900 154,250 119,425 $525,491 453,900 Total liabilities and equity FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses 602,500 289,000 313,50 Depreciation expense 24,750 136,400 161,150 other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense (9 125) 143,225 29,850 Net income 113,375 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $9,125 (details in b). b. Sold equipment costing $58,875, with accumulated depreciation of $34,125, for $15,625 cash. c. Purchased equipment costing $100,375 by paying $38,000 cash and signing a long-term note payable for the balance d. Borrowed $4,400 cash by signing a short-term note payable e. Paid $52,125 cash to reduce the long-term notes payable f. Issued 2,900 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $50,900. Problem 16-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Required: Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 Debit Credit it December 31, 2017 Balance sheet-debit Cash 77,500 54,625 255,800 1,975 112,000 501,900 55,900 Accounts receivable Prepaid expenses Equipment 55,900 Balance sheet- credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 48,000 120,675 6,800 52,750 154,250 119,425 501,900 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable