Question

Refer to the information reported about Golden Corporation in Problem flov OF Required Prepare a complete statement of cash flows using a spreadsheet as in E tatement of cash flows using a enreadsheet as in Exhibit 16A. 1; report operating tivities under the indirect method. Identify the debits and credits in the Analysis of Chan in the Analysis of Changes columns with letters that correspond to the following list of transactions and events. a. Net income was $136,000. b. Accounts receivable increased. c. Inventory increased. d. Accounts payable increased. e. Income taxes payable increased, f. Depreciation expense was $54,000, g. Purchased equipment for $36,000 cash. h. Issued 12,000 shares at $5 cash per share. i. Declared and paid $89,000 of cash dividends. anges

Answer 1

Amount $ 136,000 GOLDEN CORPORATION Satement of Cash Flows For the year ended December 31, 2017. Cash flows from Operating Activities: Amount Net Income Adjustments to net income to reconcile net income to net cash flows from Operating Activities: Income Statement items not affecting cash Depreciation expenses 54000 Changes in Current Assets and Current Liabilities Increase in Accounts Receivables $ (12,000) Increase in inventory $ (75,000) Increase in Accounts payable $ 16,000 Increase in Income Tax payable $ 3,000 Net Cash from operating activities Cash Flows from Investing Activities Purchase of Equipment $ (36,000) Net Cash used in Investting activities Cash Flows from Financing Activities Common stock at par value $ 24,000 Paid in capital in excess of par value, common stock S 36,000 Dividend paid $ (89,000) Net Cash used in Financing activities Net Increase ( decrease ) in Cash Cash balance at the beginning of year Cash balance at the end of the year $ (14,000) $ 122,000 $ (36,000) S $ $ $ (29,000) 57,000 107,000 164,000

Working Notes: Satement of increase /(Decrease) of current assets & current liabilities (except cash & cash equivalents) Particulars Accounts Receivable Inventory Accounts Payable Income Tax payable $ $ $ $ 2016 71,000 $ 526,000 $ 71,000$ 25,000 $ 2017 83,000 601,000 87,000 28,000 Change $ 12,000 $ 75,000 $ 16,000 $ 3,000 Cash from issue of common stock: Common stock at par value Paidin capital in excess of par value $ 196,000 $ (160,000) I$ 36,000 Ending Balance Less : Beginning balance Cash received from issue $ $ $ 592,000 (568,000) 24,000