Question

Required information Use the following information for the Problems below 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 Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets 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 liabilities and equity 168,000 111,400 75,000 607,000530,000 716,400 303,000 160.000) 106,000) 89,000 864, 000 345, 700 $1,049,700 $ 913,400 32,000 127,000 $ 95,000 75,000 27,100 102,100 572,000 166,000 122,70073,300 $1,049,700 913,400 600,000 200,000

Answer 1

	Working
	Cash received from customers
	Sales	$    18,12,000.00
	Less: Increase in Accounts receivable	$        -14,000.00
	Cash received from customers	$    17,98,000.00
	Cost of goods sold	$    10,90,000.00
	Add: Increase in Inventory	$          77,000.00
	Purchases	$    11,67,000.00
	Add: Increase in Accounts Payable	$        -20,000.00
	Cash paid for inventory	$    11,47,000.00
	Income Tax expense	$          27,600.00
	Add: Increase in income tax payable	$           -4,900.00
	Cash paid for income taxes	$          22,700.00
	Operating expenses	$      4,98,000.00
	Equipment A/c
	Particular	Amt (Dr)	Particular	Amt (Cr)
	To Opening Balance	$      3,03,000.00	By Balance C/d	$ 3,45,700.00
	To Cash	$          42,700.00
	To Gain on sale of equipment		By Balance C/d
		$      3,45,700.00		$ 3,45,700.00
	Accumulated Depreciation
	Particular	Amt (Dr)	Particular	Amt (Cr)
	To Bal C/d	$      1,60,000.00	By Bal B/d	$ 1,06,000.00
			By Depreciation	$     54,000.00
		$      1,60,000.00		$ 1,60,000.00
	Retained Earnings
	Beginning Retained Earnings	$          73,300.00
	Add: Net Income	$      1,42,400.00
	Less: Ending Retained Earnings	$      1,22,700.00
	Dividend Paid	$          93,000.00
	Golden Corporation
	Statement of Cash Flow(Direct Method)
	For the year ended december 31,2017
	Cash Flow from operating activities
	Cash Received from customer	$    17,98,000.00
	Cash paid to supplier	$ (11,47,000.00)
	Cash paid for Income taxes	$        (22,700.00)
	Cash paid for other expenses	$    (4,98,000.00)
	Net cash provided by operating activities=(A)	$      1,30,300.00
	Cash Flow from investing activities
	Purchased of Equipment	$        (42,700.00)
	Net cash used by investing activities=(B)	$        (42,700.00)
	Cash flow from financing activities
	Cash received from issue of common stock	$          62,000.00
	Dividend Paid	$        (93,000.00)
	Net cash used by financing activities=(C )	$        (31,000.00)
	Net increase in cash(A)+(B)+(C )	$          56,600.00
	Cash January 1,2017	$      1,11,400.00
	Cash December 31st 2017	$      1,68,000.00