Question

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 in- ventory 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 P1 P2 P3 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 $ 164,000 83,000 601,000 848,000 335.000 (158,000) $1,025,000 $107.000 71,000 526.000 704.000 299,000 (104.000) $899.000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 $ 87,000 28.000 115,000 $ 71,000 25.000 96.000 $1,792,000 1,086,000 706,000 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 Total abilities and equity..... 592,000 568,000 Sales ...... Cost of goods sold..... Gross profit Operating expenses Depreciation expense ......... Other expenses Income before taxes... Income taxes expense Net income $ 54,000 494,000 196,000 122.000 $1.025.000 160,000 75.000 $899.000 548.000 158,000 22.000 $ 136,000

Answer 1

right side mentions indirect cash flows , i have prepared indirect cash flow statement , if you need anything else, please comment i will edit my answer ASAP

GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Net income	$            136,000
Adjustments to reconcile net income to net cash provided by operations:
Accounts receivable increase(83000-71000)	$            (12,000)
Inventory increase(601000-526000)	$            (75,000)
Accounts payable increase(87000-71000)	$              16,000
Income taxes payable increase(28000-25000)	$                 3,000
Depreciation expense	$              54,000
Net cash provided by operating activities		$            122,000
Cash flows from investing activities:
Cash paid for equipment	$            (36,000)
(335000-299000)
Net cash used in investing activities		$            (36,000)
Cash flows from financing activities:
Cash received from stock issuance(592000+196000-160000-568000)	$              60,000
Cash paid for cash dividends(75000+136000-122000)	$            (89,000)
Net cash used in financing activities		$            (29,000)
Net increase (decrease)in cash		$              57,000
Cash balance at beginning of year		$            107,000
Cash balance at end of year		$            164,000