Additional Information on Year 2017 Transactions a. Purchased equipment for $64,

Question

Additional Information on Year 2017 Transactions a. Purchased equipment for $64,800 cash. b. Issued 13,700 shares of common stock for $5 cash per share. c. Declared and paid $106,000 in cash dividends Required: Prepare a complete statement of cash flows report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by ons Cash flows from investing activities Cash flows from tinancing actvities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year

Explanation / Answer

Description Amount Amount Cash flow from operating activity     157,600 Net Income before tax      209,000 Add non cash expense Depreciation         54,000 Adjustment for change in working capital Change in AR      (20,500) Change in inventory      (83,500) Change in AP         33,000 Income tax paid      (34,400) Cash flow from Financing activity     (37,500) Issue of new shares-13700*5         68,500 Dividends paid    (106,000) Cash flow from Investing activity     (64,800) Purchase of Equipment      (64,800) Total of above        55,300 Opening cash balance     125,700 Closing Cash balance     181,000 In BS     181,000 Variance                 -   Opening Accumulated Dep      112,500 Less Closing accumulated dep      166,500 Year Depreciatin         54,000 Opening tax payable         33,600 Tax for the year         45,800 total         79,400 Less Closing tax payable      (45,000) Taxes Paid         34,400

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