Question

Required information 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 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 $ 175,000 99,5ee 617,5ee 892, eee 364,6ee (163,500 $1, e93,100 $ 119,120 8 2, eee 5 37,000 738,100 310,000 (109,500) $ 938,600 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, 52 par value Paid in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ $ 189, eee 39, eee 148,600 82, eee 3 e, cee 112,600 614, eee 207. eee 124, 100 $1,093,100 579,00 176,5ee 70.500 $ 938,600 GOLDEN CORPORATION Income Statement

Answer 1

GOLDEN CORPORATION
Spreadsheet for Statement of Cash Flows
For the Year Ended December 31, 2017
		Analysis of Changes
	December 31, 2016	Debit	Credit	December 31, 2017
Balance sheet-debit balance accounts
Cash	119100	55900		175000
Accounts receivable	82000	17500		99500
Inventory	537000	80500		617500
Equipment	310000	54000		364000
	1048100			1256000
Balance sheet-credit balance accounts
Accumulated depreciation-Equipment	109500		54000	163500
Accounts payable	82000		27000	109000
Income taxes payable	30600		8400	39000
Common stock, $2 par value	579000		35000	614000
Paid-in capital in excess of par value, common stock	176500		30500	207000
Retained earnings	70500	100000	153600	124100
	1048100			1256600
Statement of cash flows
Operating activities
Net income		153600
Increase in accounts receivable			17500
Increase in inventory			80500
Increase in accounts payable		27000
Increase in income tax payable		8400
Depreciation expense		54000
Investing activities
Payment for equipment			54600
Financing activities
Issued common stock for cash		65500
Paid cash dividends			100000
Sub-totals		308500	252600
Net Increase in Cash			55900
Totals		308500	308500