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 2018 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, 2018 and 2017 2018 2017 $ 164,000 83,000 601,000 848,000 335,000 (158,000) $1,025,000 $ 107,000 71,000 526,000 704,000 299,000 (104,000) $ 899,000 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 $ $ 87,000 28,000 115,000 71,000 25,000 96,000 592,000 196,000 122,000 $1,025,000 568,000 160,000 75,000 $ 899,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2018 Sales $1,792,000 Cost of goods sold 1,086,000 Gross profit 706,000 Operating expenses Depreciation expense $ 54,000 Other expenses 494,000 548,000 Income before taxes 158,000 Income taxes expense 22,000 Net income $ 136,000 Problem 12-7AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Additional Information on Year 2018 Transactions a. Net income was $136,000. 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 $36,000 cash. h. Issued 12,000 shares at $5 cash per share. i. Declared and paid $89,000 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, 2018 Analysis of Changes December 31, 2017 Debit Credit December 31, 2018 Balance sheet-debit balance accounts Cash $ 107,000 $ 164,000 Accounts receivable 71,000 526,000 Inventory Equipment 299,000 $ 1,003,000 $ 104,000 71,000 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 25,000 568,000 160,000 75,000 1,003,000 $ Statement of cash flows Operating activities Statement of cash flows Operating activities Investing activities Financing activities
