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Required information [The following information applies to the questions displayed below.] Golden Corp., a merchandiser, recently...

Required information

[The following information applies to the questions displayed 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, 2017 and 2016
2017 2016
Assets
Cash $ 164,000 $ 107,000
Accounts receivable 83,000 71,000
Inventory 601,000 526,000
Total current assets 848,000 704,000
Equipment 335,000 299,000
Accum. depreciation—Equipment (158,000 ) (104,000 )
Total assets $ 1,025,000 $ 899,000
Liabilities and Equity
Accounts payable $ 87,000 $ 71,000
Income taxes payable 28,000 25,000
Total current liabilities 115,000 96,000
Equity
Common stock, $2 par value 592,000 568,000
Paid-in capital in excess of par value, common stock 196,000 160,000
Retained earnings 122,000 75,000
Total liabilities and equity $ 1,025,000 $ 899,000

  

GOLDEN CORPORATION
Income Statement
For Year Ended December 31, 2017
Sales $ 1,792,000
Cost of goods sold 1,086,000
Gross profit 706,000
Operating expenses
Depreciation expense $ 54,000
Other expenses 494,000 548,000
Income before taxes 158,000
Income taxes expense 22,000
Net income $ 136,000

Additional Information on Year 2017 Transactions

  1. Purchased equipment for $36,000 cash.
  2. Issued 12,000 shares of common stock for $5 cash per share.
  3. Declared and paid $89,000 in cash dividends.


Required:
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.)

Answer is not complete.

GOLDEN CORPORATION
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
not attempted not attempted
Adjustments to reconcile net income to net cash provided by operations:
not attempted not attempted
not attempted not attempted
not attempted not attempted
not attempted not attempted
not attempted not attempted
not attempted not attempted
not attempted $0
Cash flows from investing activities:
not attempted not attempted
not attempted not attempted
not attempted 0
Cash flows from financing activities:
not attempted not attempted
not attempted not attempted
not attempted not attempted
not attempted 0
Net increase (decrease) in cash $0
Cash balance at beginning of year not attempted
Cash balance at end of year $0

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