Question

Golden Corp, a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit Problem 16-6A sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of in- Indirect: Statement ventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory. (5) Other of cash flows Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash P1 P2 P3 payment of taxes. The company's balance sheets and income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash. Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment 164,000 $107,000 83,00071,000 601000526,000 848,000 704,000 335,000 299,000 158,000) (104,000) GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities $1,792,000 1,086,000 706.000 87,000 71,000 Sales Cost of goods sold Gross profit Operating expenses 28,00025,000 115,000 96,000 Equity Common stock, $2 par value.. Paid-in capital in excess $ 54,000 Depreciation expense Other expenses 592,000568,000 494,000 548000 158,000 22.000 96,000160,000 122.000 75,000 1,025,000$899.000 of par value, common stock. … Income taxes expense Net income . … Total liabilities and equity. …、…、…

Answer 1

Solution:

Golden Corporation
Statement of Cash Flows
For the Year ended December 31, 2017
Particulars	Details	Amount
Cash Flow from Operating Activities:
Net Income		$1,36,000.00
Adjustments to reconcile net income to cash flow from operating activities:
Depreciation expense	$54,000.00
Accounts Receivable Increase ($71000- $83000)	-$12,000.00
Inventory Increase ($526000-$601000)	-$75,000.00
Accounts Payable Increase ($87000-$71000)	$16,000.00
Income Tax Payable increase ($28000-$25000)	$3,000.00
Total Adjustments		-$14,000.00
Net Cash provided by Operating Activites		$1,22,000.00
Cash Flow from Investing Activities:
Cash Paid for Equipment	-$36,000.00
Net Cash Flow From Investing Activites		-$36,000.00
Cash Flow from Financing Activities:
Cash Received from issue of Common Stock (12000*$5)	$60,000.00
Dividend Paid	-$89,000.00
Net Cash Flow From Financing Activities		-$29,000.00
Total Cash flow from all activities		$57,000.00
Cash at the beginning of the year		$1,07,000.00
Cash at the end of year		$1,64,000.00