Question

Required information The following information applies to the questions displayed below.) Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, () all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers. (3) all purchases of inventory are on Credit (1) 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. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 183,000 111,500 629,500 924,000 386,200 (167,500) $1,142,700 $ 127,900 90, eee 545, eee 762,988 318, eee (113,5ee $ 967,4ee 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 $ $ 125,000 47,888 172,000 98,eee 34,60e 124,600 614,800 230, 200 125.700 587,800 188,500 67.300

Answer 1

Solution

GOLDEN CORPORATION
Cash flow Statement
For the Year ended December 31,2017
Cash Flow from Operating Activities:
Net Income	$ 166,400
Adjustments to reconcile net income to net cash provided by operations
Income statement items not affecting cash
Depreciation Expense	$ 54,000
Changes in current assets and current liabilities
Increase in Accounts Receivables	-$ 21,500
Increase in Inventory	-$ 84,500
Increase in Accounts payable	$ 35,000
Increase in Income taxes payable	$ 12,400
A. Cash Outflow from Operating Activities		$ 161,800
cash flow from investing activities
Purchase of Equipment	-$ 68,200
B.Net cash used by investing activities		-$ 68,200
Cash flows from Financing activities
Payment of Dividend	-$ 108,000
Issue of Common Stock	$ 69,500
C. Net cash Used in financing activities		-$ 38,500
(A+B+C) Net increase (Decrease) in cash and Cash Equivalent		$ 55,100
Cash balance, December 31, prior year		$ 127,900
Cash balance, December 31, current year		$ 183,000