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

Question

Required information

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 follow.

  

Problem 12-6A Indirect: Statement of cash flows LO P1, P2, P3

Additional Information on Year 2017 Transactions

Purchased equipment for $54,600 cash.

Issued 13,100 shares of common stock for $5 cash per share.

Declared and paid $100,000 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.)
If you use any math please show work.

GOLDEN CORPORATION
Comparative Balance Sheets
December 31, 2017 and 2016 2017 2016 Assets Cash $ 175,000 $ 119,100 Accounts receivable 99,500 82,000 Inventory 617,500 537,000 Total current assets 892,000 738,100 Equipment 364,600 310,000 Accum. depreciation—Equipment (163,500 ) (109,500 ) Total assets $ 1,093,100 $ 938,600 Liabilities and Equity Accounts payable $ 109,000 $ 82,000 Income taxes payable 39,000 30,600 Total current liabilities 148,000 112,600 Equity Common stock, $2 par value 614,000 579,000 Paid-in capital in excess of par value, common stock 207,000 176,500 Retained earnings 124,100 70,500 Total liabilities and equity $ 1,093,100 $ 938,600

Explanation / Answer

Golden Corporation Statement of cash flow For the year ended Dec 31,2017 Cash Flow from operating activity Net Income $    153,600.00 Adjustment of non cash effects Deprecaition Expense ($163500-$109500) $      54,000.00 Increase in accounts receivable=($99500-$82000) $    (17,500.00) Increase in Inventory=($617500-$537000) $    (80,500.00) Increase in Accounts Payable=($109000-$82000) $      27,000.00 Increase in income tax payable=($39000-$30600) $        8,400.00 Net Cash flow from operating Activities $ 145,000.00 Cash flow from investing Activities Purchase Equipment ($364600-$310000) $    (54,600.00) Net Cash flow from investing Activities $ (54,600.00) Cash Flow from financing activities Issued of common stock=(13100*$5) $      26,200.00 Paid in Capital excess of Par=(13100*$3) $      39,300.00 Payment of Cash dividend (Given ) $ (100,000.00) Net cash flow from financing activites= $ (34,500.00) Net increase in cash $    55,900.00 Opening Cash balance $ 119,100.00 Closing Cash balance $ 175,000.00

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