Use the following information for the Problems below. The following information

Question

Use the following information for the Problems below. The following information applies to the questions displayed below. Golden Corp., a merchandiser, recently completed its 2017 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 follovw GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets $172,000 $ 115,800 79,000 534,000 728,800 307,000 95,000 613,000 880,000 356,500 (162,000) (108,000) $1,074,500 $ 927,800 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 $ 103,000 $ 79,000 29,100 108,100 36,000 139,000 576,000 172,000 71,700 $1,074,500 $ 927,800 608,000 204,000 123,500 Total liabilities and equity GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,832,000 1,094,000 738,000 $ 54,000 502,000 Depreciation expense Other expenses Income before taxes Income taxes expense Net income 556,000 182,000 33,200 $148,800

Explanation / Answer

GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Net Income $148,800 Adjustments to reconcile net income to net cash provided by operations: Accounts receivable increase -16,000 Inventory increase -79,000 Accounts payable increase 24,000 Income taxes payable increase 6,900 Depreciation expense 54,000 Net cash provided by operating activities 138700 Cash flows from investing activities: Cash paid for equipment -49,500 Net cash used in investing activities -49500 Cash flows from financing activities: Cash received from stock issuance 64,000 Cash paid for cash dividends -97,000 Net cash used in financing activities -33000 Net increase (decrease) in cash 56200 Cash balance at beginning of year 115,800 Cash balance at end of year 172000

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