Question

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 $ 171,000 114,700 78,000 533,000 725,700 306,000 107,500 $1,068,300 924, 200 93,500 611,500 876,000 353,800 161,500 $ 101,000 $ 78, 000 28,600 106,600 35, 000 136,000 606,000 203,000 123,300 $1,068,300 575,000 170,500 72,100 924, 200 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,827,000 1,093,000 734,000 $ 54,000 501,000 Depreciation expense Other expenses Income before taxes Income taxes expense Net income 555,000 179,000 31,800 $ 147,200

Answer 1