Question

Required: Prepare a complete statement of cash flows using the Indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)

Its incomplete

Return to 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, (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. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 169,000 90, 500 608,500 868,000 348,400 (160, 500) $1,055,900 $ 112.500 76,000 531,000 719,500 304,000 (106,500) $ 917,000 Assets Cash Accounts receivable Inventory Total current assets Equipment Aceum. 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 Retained earnings Total liabilities and equity $ 97,000 33,000 130,000 76,000 27.600 103.600 598.000 205,000 122.900 $1.055,900 573,000 167,500 72,900 $.917.000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,817.000 Cost of goods sold 1,091,000 Gross profit 726,000 Operating expenses Depreciation expense $ 54,000 Other expenses 499,000 553000 Income before taxes 173,000 Income taxes expense 29,000 Het leeone 144.000

Answer 1

Solution

GOLDEN CORPORATION
Cash flow Statement
For the Year ended December 31,2017
Cash Flow from Operating Activities:
Net Income	$ 144,000
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	-$ 14,500
Increase in Inventory	-$ 77,500
Increase in Accounts payable	$ 21,000
Increase in Income taxes payable	$ 5,400
A. Cash Outflow from Operating Activities		$ 132,400
cash flow from investing activities
Purchase of Equipment	-$ 44,400
B.Net cash used by investing activities		-$ 44,400
Cash flows from Financing activities
Payment of Dividend	-$ 94,000
Issue of Common Stock	$ 62,500
C. Net cash Used in financing activities		-$ 31,500
(A+B+C) Net increase (Decrease) in cash and Cash Equivalent		$ 56,500
Cash balance, December 31, prior year		$ 112,500
Cash balance, December 31, current year		$ 169,000