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.

2015

2014

Prepare a complete statement of cash flows using a spreadsheet; report operating activities under the indirect method. (Enter all amounts as positive values.)

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.

Explanation / Answer

Cash Flow Statement   Golden Corporation Details Dec31.2015. Dec31 2014. Expense in 2015 Net cAsh Flow Increase/(Decrease) Cash Flow From Opearing Activities Net Income before Tax                             217,864 Income Tax Paid             26,290            23,790           42,483                             (39,983) Add Back Depreciation                               58,000 Working Capital Changes Accounts Receivable Increase             86,605            79,605                               (7,000) Inventory Increase          611,740          527,040                             (84,700) Accounts Payable increase          124,090            60,390                               63,700 Cash Flow From Opearing Activities                             207,881 Cash Flow From Investing Activities Fixed Asset Purchase          389,715          293,715                             (96,000) Total Cash Flow From Investing Activities                             (96,000) Cash Flow from Financing Activities Issue of common stock          530,800          510,800                               20,000 API in excess of par, common stock          188,125          160,125                               28,000 Dividend paid (retained earning)          252,276          159,895         175,381                             (83,000) Total Cash Flow from Financing Activities                             (35,000) Total of cash flows from Opearting, investing                               76,881 And Financing activities Cash Balance Opening                             115,290 Add Net changes in Cash flow                               76,881 Closing Cash Balance                             192,171

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