Question

Use the following information for the Problems below. Golden Corp. a merchandiser, recently completed its 2017 operations. For the year, (l) 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. The company's balance sheets and Income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 170,000 92,000 610,000 113,600 77.000 532.000 . depreciatio n 390.600 பயை palar Recounts payable Income tax payable Total current liabilities $ 99,000 77.000 20. 100 604,000 574.000 Common stock, 02 par valve Paid-in capital in excess of par value, common stock Retained earnings Total abilities and equity 123,100 $1.062.100 72.00 920.600 GOLDEN GORPORATION For Tearded December 31, 2017 1.092,000 Problem 16-6A Indirect: Statement of cash flows LO P1, P2, P3 Additional Information on Year 2017 Transactions Purchased equipment for $45 100 cash sued 12.600 hares of common stock for cash per share Declared and paid $95.000 in cash dividends. Required: Prepare a complete statement of cash flows report its cash inflows and cash outflows from operating activities according to the indirect method (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Amount $ 145,600 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 (15,000) Increase in inventory (78,000) Increase in Accounts payable $ 22,000 Increase in Income Tax payable $ 5,900 Net Cash from operating activities Cash Flows from Investing Activities Purchase of Equipment $ (46,100) Net Cash used in Investting activities Cash Flows from Financing Activities Common stock at par value $ 30,000 Paid in capital in excess of par value, common stock $ 33,000 Dividend paid $ (95,000) 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 $ S (11,100) 134,500 S (46,100) $ $ $ $ (32,000)| 56,400 113,600 170,000

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 77,000$ 532,000 $ 77,000$ 28,100 $ 2017 Change 92,000 $ 15,000 610,000 $ 78,000 99,000 $ 22,000 34,000 $ 5,900 Cash from issue of common stock: Common stock at par value Paidin capital in excess of par value $ 202,000 $ (169,000) $ 33,000 Ending Balance Less : Beginning balance Cash received from issue $ $ $ 604,000 (574,000) 30,000