Use the following Informatlon for the Problems below. Golden Corp., a merchandis

Question

Use the following Informatlon 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 Recelvable reflect cash recelpts 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 2816 Assets S 165,8 188,1e9 72,889 527,690 787,180 ?? , ??? (184.588) $.982 , ??? Accounts receivable 94,500 68 Total current assets Equipnent Accum. depreciation Equipment Total assets 852,8 337 , ??? 158,500) 3) $1,031 , 100 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Conmon stock, $2 par value Paid-in capital in excess of par value, connon stock Retained earnings Total liabilities and equity 29, ??? 118,889 594,890 25,629 97,608 569,608 161,580 122.1884.588 $1,831,100 $ 902.68? 197,899 GOLDEN CORPORATION Incone Statement For Year Ended December 31, 2817 Sales Cost of goods sold Gross profit Operating expenses $1,797,008 1,887,009 718,000 Depreciation expense Other expenses Income before taxes Income taxes expense Net income 495.88549.8e 161,690 23.480 $ 137.68?

Explanation / Answer

Analysis of changes December 31,2016 Debit Credit December 31,2017 Balance Sheet Debit balance accounts Cash 108100 56900 165000 Accouunts Receivable 72000 12500 84500 Inventory 527000 75500 602500 Equipment 300000 37600 337600 1007100 1189600 Balance Sheet Credit Balance accounts Accumulated Depriciation - Equipment 104500 54000 158500 Accounts payable 72000 17000 89000 Income tax payable 25600 3400 29000 Common stock $2 Par value 569000 25000 594000 Paid-in cpaital in excess of par value, common stock 161500 35500 197000 Retained Earnings 74500 47600 122100 1007100 1189600 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 124000 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 -29500 Net increase (decrease) in cash 56900 Cash balance at beginning of year 108,100 Cash balance at end of year 165000

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