Golden Corp., a merchandiser, recently completed its 2015 operations. For the ye

Question

Golden Corp., a merchandiser, recently completed its 2015 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, 2015 and 2014 2015 20 2014 Assets Cash Accounts receivable Inventory $ 220,000 $ 156,000 93,000 78,000 629,000 540,000 Total current assets Equipment 942,000 774,000 370,000 327,000 (181,000) (118,000) depreciation-Equipment Total assets $1,131,000 $983,000 Liabilities and Equity Accounts payable Income taxes payable $ 95,000 $ 85,000 44,000 39,000 Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 139,000 124,000 622,000 596,000 213,000 74,000 89,000 157,000 Total liabilities and equity $1,131,000 $983,000

Explanation / Answer

GOLDEN CORP

CASH FLOW STATEMENTS
As of Year ended 2015

Cash flows from operating activities Net income $ 166,000 Adjustments for: Depreciation and amortization 63000 Increase in Accounts receivables -15000 Increase in inventories -89000 Increase in Accounts payables 10000 Increase in Income taxes payables 5000 ($ 26,000) Net Cash from Operating Activities $ 140,000 Net cash from Investing activities Icrease Plant And equipment $ (43,000.00) Net cash used in investing activities $ (43,000.00) Net cash from financing activities Issue of common stock $ 65,000.00 Cash dividends $ (98,000.00) Net cash used in financing activities $ (33,000.00) Net increase in cash $   64,000.00 Cash balance as of Beg $ 156,000.00 Cash balance as of Ending $ 220,000.00

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