***** [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 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, 52 par value Paid in capital in excess of par value, con stock Retained earnings Total liabilities and equity $ 168,000 89,000 607.000 864,000 345,700 (160.000) $1,049,700 $ 111,400 75,000 530,000 716,400 303,000 (106,000) $ 913, 400 $ 95,000 32,000 127,000 $ 75,000 27.100 102,100 600,000 200,000 122,700 $1,049,700 575,200 162,800 73,300 $ 913,400 7 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 Other expenses 498,000 Income before taxes Income taxes expense Net income $1,812,000 1,090,000 722,000 552,000 170,000 27.600 $ 142,400 Additional Information on Year 2018 Transactions a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share c. Declared and paid $93,000 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, 2018 Cash flows from operating activities Adjustments to reconcile net income to not cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities $ 0 Cash flows from investing activities: 0 Cash flows from financing activities: 13 Prepare a complete statement of cash flows, report its cash inflows and cash outflows from operating activities acco indirect method. (Amounts to be deducted should be indicated with a minus sign.) ts GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2018 Cash flows from operating activities eBook Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Print Changes in current assets and current liabilities Terences $ Cash flows from investing activities 0 Cash flows from financing activities 0 S 0 Net increase (decrease) in cash Cash balance at December 31, 2017 Cash balance at December 31, 2018 $ 0
