Golden Corp., a merchandiser, recently completed its 2016 operations. For the ye

Question

Golden Corp., a merchandiser, recently completed its 2016 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, 2016 and 2015 2015 117,432 879,823936 832 2016 S 174,694 93,170 611,959 Accounts receivable 81,084 Total current assets 735,348 299,172 102,520 $1,058,752 S 932,000 334,566 155,637 Accum. depreciation- Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Pald-in capital in excess of par value, common stock Retained earnings Total liabilities and equity S 96,928 $ 69,878 27,528 97,406 121,160 572,400 230,300 158,646 $1,058,752 524,400 163,100 123,340 932,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2016 Cost of goods sold Gross profit Operating expenses $2,290,000 1,099,200 1,190,800 Depreciation expense $ 53,117 Other expenses Income before taxes Income taxes expense Net income 460,565 513,682 677,118 $ 545,080

Explanation / Answer

Workings:

Direct method Cash flow statement Particulars Amount Cash flow from operating activities: Cash received from customers            2,277,914 Cash paid for inventory         (1,201,377) Cash paid for other expenses             (460,565) Cash paid for income taxes             (128,742) Net cash provided by operating activities               487,230 Cash flow from investing activities: Cash paid for equipment               (35,394) Net cash used in investing activities               (35,394) Cash flow from financing activities: Cash received from issuing stock               115,200 Cash paid for dividends             (509,774) Net cash used in financing activities             (394,574) Net increase/(decrease) in cash                  57,262 Cash at the beginning of the year               117,432 Cash balance at the end of the year               174,694

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