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5 homework Requlred Information Golden Corp, a merchandiser recently completed I

ID: 2333177 • Letter: 5

Question

5 homework Requlred Information Golden Corp, a merchandiser recently completed Its 2017 operations. For the year, ( all salles are credit sales, (2) all credits to Accounts Recelvable reflect cash receipts from customers, (3) all purchases of Inventory are on crean, (4) all debits to Accounts Payable reflect Expenses are all cash expenses, and 6) any change nir come Taxes Payable renects the accrual and cash payment of taxes. The company's balance sheets and Income statement follow cash payments for inventory, (5) Other Comparative Balance Sheets December 31, 2017 and 2016 Assets Cash Accounts receivable $ 178,000 122,400 85,000 622,000540,000 747,400 372,700 313,000 165,0001 (111,0001 $1,111,700 949,400 104,000 Total current assets Equipment Accum. depreciation-Equipment Total assets 904,000 Liabilities and Equity nts payable Income taxes payable Total current liabilities Equity common stock, 2 par value Paid-in capital in excess of par alue, common stock Ret S 115,000 85,000 157,000 111,100 620,000 582,000 210,00 181,000 124,700 32,100 Total 1iabilities and equity $1,111,70 941,400 COLDEN CORPORATION Income Statement For Year Ended December 31 2017 Sales Cost of goodsr sold Grons profit Operating expenaes $1 862,900 742,00 Depreclation s 54,000 508 00052 000 Other experter It.come beterR taxes Income taXes expainas 41 600 Inf oni Year 2017 Transactions

Explanation / Answer

Statement of cash flows

For the year ended December 31, 2017

                                              Particulars

$

$

I.Cash flows from Operating Activities

Net income

158,400

Add: Provision for tax made

41,600

          Depreciation expense

54,000

                               Operating profit before working capital changes

254,000

Add: Increase in current liabilities

Accounts payable

30,000

Less: Increase in current assets

                                                        Cash generated from operations

183,000

Less: Tax paid

(31,700)

                                   Net cash generated from Operating Activities

151,300

II.Cash flow from Investing Activities

        Purchase of equipment

(59,700)

                                   Net cash used in Investing Activities

(59,700)

III. Cash flow from Financing Activities

         Issue of common shares

67,000

Cash dividend paid

(103,000)

       Net cash used in Financing Activities                         

(36,000)

     Net increase in Cash and Cash Equivalents(I +II +III)

55,600

Add: Cash and cash equivalents in the beginning of the period

122,400

         Cash and cash equivalents at the end of the period

178,000

Income tax payable Account

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                                              Particulars

$

$

I.Cash flows from Operating Activities

Net income

158,400

Add: Provision for tax made

41,600

          Depreciation expense

54,000

                               Operating profit before working capital changes

254,000

Add: Increase in current liabilities

Accounts payable

30,000

Less: Increase in current assets

Accounts receivables (19,000) Inventories (82,000)

                                                        Cash generated from operations

183,000

Less: Tax paid

(31,700)

                                   Net cash generated from Operating Activities

151,300

II.Cash flow from Investing Activities

        Purchase of equipment

(59,700)

                                   Net cash used in Investing Activities

(59,700)

III. Cash flow from Financing Activities

         Issue of common shares

67,000

Cash dividend paid

(103,000)

       Net cash used in Financing Activities                         

(36,000)

     Net increase in Cash and Cash Equivalents(I +II +III)

55,600

Add: Cash and cash equivalents in the beginning of the period

122,400

         Cash and cash equivalents at the end of the period

178,000

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