Question

This one keeps coming incomplete so im lost on it

GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Net income $137,600 Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 54,000 Accounts receivable increase (12,500) Inventory increase (75,500) Accounts payable increase (17,000) Income taxes payable decrease 3,400 $90,000 Cash flows from investing activities: Cash paid for equipment (37,600) Net cash used in financing activities (37,600) Cash flows from financing activities: Cash received from stock issuance 60,500 Cash paid for cash dividends (90,000) Net cash used in financing activities (29,500) Net increase (decrease) in cash $22,900 Cash balance at beginning of year 108,100 Cash balance at end of year $131,000

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 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
	2017				2016
Assets
Cash	$	165,000			$	108,100
Accounts receivable		84,500				72,000
Inventory		602,500				527,000
Total current assets		852,000				707,100
Equipment		337,600				300,000
Accum. depreciation—Equipment		(158,500	)			(104,500	)
Total assets	$	1,031,100			$	902,600
Liabilities and Equity
Accounts payable	$	89,000			$	72,000
Income taxes payable		29,000				25,600
Total current liabilities		118,000				97,600
Equity
Common stock, $2 par value		594,000				569,000
Paid-in capital in excess of par value, common stock		197,000				161,500
Retained earnings		122,100				74,500
Total liabilities and equity	$	1,031,100			$	902,600
GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 1,797,000 Cost of goods sold 1,087,000 Gross profit 710,000 Operating expenses Depreciation expense $ 54,000 Other expenses 495,000 549,000 Income before taxes 161,000 Income taxes expense 23,400 Net income $ 137,600 Purchased equipment for $37,600 cash. Issued 12,100 shares of common stock for $5 cash per share. Declared and paid $90,000 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.

Answer 1

GOLDEN CORPORATION
Statement of cash flows ( Indirect method)
For the year ended December 31, 2017
	(Amount in $)	(Amount in $)
Cash flows from Operating Activities
Net Income	137,600
Adjustments to reconcile net income to net cash provided         by operating activities:
Income statement items not affecting cash:
Depreciation expenses	54,000
Changes in current operating assets and liabilities:
Increase in Accounts receivables	(12,500)
Increase in inventory	(75,500)
Increase in Accounts Payable	17,000
Increase in Income Tax Payable	3,400
Net cash provided by operating activities		124,000
Cash flows from Investing Activities
Cash paid for purchase equipment	(37,600)
Net cash used in investing activities		(37,600)
Cash flows from Financing Activities
Cash received from stock issuance	60,500
Cash paid for dividends	(90,000)
Net cash from in financing activities		(29,500)
Net increase (decrease) in cash		56,900
Cash balance at prior year end		108,100
Cash balance at current year end		165,000