Golden Corp., a merchandiser, recently completed its 2017 operations. For the ye

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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 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 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 $ 174,000 $ 118,000 81,000 616,000536,000 735,000 309,000 (163,000) (109, eee $1,086,900 $ 935,000 98,000 888,000 361,900 107,000 81,000 38,00030,100 111,100 145 , 000 612,000 206,000 123,900 578,000 175,000 70,900

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FORTEN COMPANY Statement of cash flow For the year ended December 31,2017 Cash flows from operating activities Net income 152,000 Adjustments for: Depreciation expenses 54,000 Loss on sale of equipment 20,125 Income tax expense 36,000 Income tax paid (28,100) 82,025 Increase in trade receivable (56,000) Increase in inventory (17,000) Increase in account payable 26,000 (47,000) Cash generated from operation 187,025

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