Golden Corp, a merchandiser, recently completed its 2018 operations. For the yea
ID: 2431406 • Letter: G
Question
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, $2 par value Paid-in capital in excess of par value, common stock $ 180,000 124,600 87,000 625,000542,000 753, 600 378,100 315,000 107,000 912,000 (166-000) (112,000) $1,124,100 956,600 $119,000 87,000 44,00033,100 163,000 624,000 596,800 212,000 171,200 125,100 68,500 $1,124,100 956,600 Total liabilities and equityExplanation / Answer
Answers
Accounts receivables (Cash received)
Beginning Balance
$ 87,000.00
Sales during 2018
$ 1,872,000.00
Ending Balance
$ (107,000.00)
Cash received from Accounts receivables
$ 1,852,000.00
Inventories (Purchased)
Cost of Goods Sold
$ 1,102,000.00
Ending Balance
$ 625,000.00
Beginning Balance
$ (542,000.00)
Inventory Purchased
$ 1,185,000.00
Accounts payable (Cash paid)
Beginning Balance
$ 87,000.00
Inventory Purchased
$ 1,185,000.00
Ending Balance
$ (119,000.00)
Cash paid to accounts payable
$ 1,153,000.00
Income Tax Payable & Cash paid
Beginning Balance
$ 33,100.00
Income taxes expense
$ 44,400.00
Ending Balance
$ (44,000.00)
Income taxes paid in cash
$ 33,500.00
Cash Flows from Operating Activities
Cash received from accounts receivables
$ 1,852,000.00
Cash paid to accounts payable for purchases
$ (1,153,000.00)
Cash paid for 'other expenses'
$ (510,000.00)
Cash paid for Income taxes
$ (33,500.00)
Net Cash provided by operating activities
$ 155,500.00
Cash flows from Investing Activities
Equipment purchased
$ (63,100.00)
Net Cash used by Investing activities
$ (63,100.00)
Cash flows from Financing activities
Common Stock issued
$ 68,000.00
Dividend declared and paid
$ (105,000.00)
Net Cash used by Financing activities
$ (37,000.00)
Net Increase (decrease) in Cash
$ 55,400.00
Cash balance on Dec 31 2017
$ 124,600.00
Cash balance on Dec 31 2018
$ 180,000.00
Accounts receivables (Cash received)
Beginning Balance
$ 87,000.00
Sales during 2018
$ 1,872,000.00
Ending Balance
$ (107,000.00)
Cash received from Accounts receivables
$ 1,852,000.00
Inventories (Purchased)
Cost of Goods Sold
$ 1,102,000.00
Ending Balance
$ 625,000.00
Beginning Balance
$ (542,000.00)
Inventory Purchased
$ 1,185,000.00
Accounts payable (Cash paid)
Beginning Balance
$ 87,000.00
Inventory Purchased
$ 1,185,000.00
Ending Balance
$ (119,000.00)
Cash paid to accounts payable
$ 1,153,000.00
Income Tax Payable & Cash paid
Beginning Balance
$ 33,100.00
Income taxes expense
$ 44,400.00
Ending Balance
$ (44,000.00)
Income taxes paid in cash
$ 33,500.00
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