Required information Use the following information for the Problems below The fo

Question

Required information Use the following information for the Problems below The foliowing Information applies to the questions displayed below Golden Corp, a merchandisec recently completed its 2017 operations For the year, (T all sales are credit sales, (2) all edits to Accounts Receivable feflect cash feceipts tom customers. all purchases of inventory are on credL(4) all debits to Accounts Payebie refect cash payments for inventory, Other Expenses are all cash expenses, and (6) any change in lincome Texes Payable refects the accrual and cash pnyment of teses. The company's belance sheets and income statement follow GOLDES CORPORATION Comparative Balance Sheets Decenber 31, 2017 and 2016 s 181,000 125,700 ,000 Total current assets 380,800 316,000 960,200 121,000 88,000 121,600 626,000 55,000 13,000 15,500 Total assets Liabilities and Equity Accounts payable Common stock, $2 par value Paid-in capital in excess of par value, Incone Statenment For Year Ended December 31, 2017 Sales Cost of goods sold Gross profie Operating expenses 511-000565-000 Other expenses oome before ecome taxes 45,800 Additional Information on Year 2017 Transactions a. Purchased equipment for $64,800 cash b. Issued 13,700 shares of common stock for $5 cash per share. c. Declared and pald $106,000 in cash dividends Prepare a complete statement of cash flows report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign) Statement of Cash Flows For Year Ended Cash flows from Adjustments to reconcile net income to net cash provided by Cash flows from Net increase (decrease) in cash sh balance at beginning of year Cash balance at end of year

Explanation / Answer

Statement of Cash Flow Particulars Amount Total Amount Income          163,200.00 Depreciation             54,000.00 Increase in AR          (20,500.00) Increase in inventory          (83,500.00) Increase in AP             33,000.00 Increase in income tax payable             11,400.00 Cash flow from operating activities          157,600.00 Cash flow from Investing activities Purchase of PPE          (64,800.00) Cash flow from Investing activities          (64,800.00) Cash flow from Financing activities Issue of Stock             41,000.00 Issue of additional Paid in capital             27,500.00 Dividends Paid        (106,000.00) Cash flow from Financing activities          (37,500.00) Opening cash and cash equivalents          125,700.00 Closing cash and cash equivalents          181,000.00

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