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 2014 Assets Cash Accounts receivable Inventory $ 153,084 $ 121,590 83,955 555,840 91,155 641,440 Total current assets Equipment Accum. depreciation 761,385 309,765 (163,050) (106,150) 885,679 396,765 Equipment Total assets $1,119,394 $ 965,000 Liabilities and Equity Accounts payable Income taxes payable $ 127,590 $ 63,690 25,090 27,690 Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 155,280 88,780 523,900 193,075 247,139 501,900 168,875 205,445 Total liabilities and equity $1,119,394 $ 965,000

Explanation / Answer

GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For the Year Ended December 31, 2015 Analysis of Changes December 31, 2014 Debit Credit December 31, 2015 Balance sheet-debit balance accounts Cash 121590 31494 153084 Accounts receivable 83955 7200 91155 Inventory 555840 85600 641440 Equipment 309765 87000 396765 1071150 1282444 Balance sheet-credit balance accounts Accumulated depreciation-Equipment 106150 56900 163050 Accounts payable 63690 63900 127590 Income taxes payable 25090 2600 27690 Common stock, $2 par value 501900 22000 523900 Paid-in capital in excess of par value, common stock 168875 24200 193075 Retained earnings 205445 41694 247139 1071150 1282444 Statement of cash flows Operating activities Net income 134694 Increase in accounts receivable 7200 Increase in inventory 85600 Increase in accounts payable 63900 Increase in income tax payable 2600 Depreciation expense 56900 Investing activities Payment for equipment 87000 Financing activities Issued common stock for cash 46200 Paid cash dividends 93000 Sub-totals 304294 272800 Net Increase in Cash 31494 Totals 304294 304294

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