Use the following information for the Problems below Golden Corp., a merchandise
ID: 2518137 • Letter: U
Question
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, 2817 and 2816 2817 2816 Assets Cash Accounts receivable $ 165, 188,18e 72,888 84,588 682,58e 852,88e 337,68e Total current assets Equipment Accum. depreciation-Equipment Total assets 787,18e 380 , 090 (158.58) (1e4,588) $1,831,18e 982,688 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in Retained earnings Total liabilities and equity $ 89, 72,8e 25,688 97,680 29,888 118, 594,88e 569,88e 161,5ae 122.10974 589 $1,831,18e 982,68e capital in excess of par value, common stock 197,888 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2817 et 203727190 Sales Cost of goods sold Gross profit Operating expenses $1,797,83e 1,887,e8e 718,8e Depreciation expense s 54,080 Other expenses Income before taxes Income taxes expense Net income 495,080549888 161,88e 23,488 $137,68eExplanation / Answer
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: Accounts receivable increase -12,500 Inventory increase -75,500 Accounts payable increase 17,000 Income taxes payable increase 3,400 Depreciation expense 54,000 Net cash provided by operating activities $124,000 Cash flows from investing activities: Cash paid for equipment -37,600 Net cash used in investing activities -37600 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 $56,900 Cash balance at beginning of year 108,100 Cash balance at end of year $165,000