Golden Corp A Merchandiser Recently Completed Its 2017 Operations Forthe Year I

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.

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Golden Corp. a merchandiser, recently completed its 2017 operations. Forthe year, {‘I} all sales are credit sales, {2] allcredits to Accounts Receivable reflect cash receipts from customers, {3} all purchases of inventory are on credit. [at] alldebits to Accounts Payable reflect cash payments for inventory. [5] Other Expenses are all cash expenses. and [6] anychange in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets andincome statement follow. GOLDEN CDRPORHTIUNComparative Balance SheetsDecember 31, 201? and 2016 2017 2015 Assets Cash $ 1?5,000 $ 119,111+]Accounts receivable 99,500 32,000Inventory 613,500 537,000Total current assets 392,000 133,100Equipmflnt 364,600 310,000Accum. depreciation—Equipment £163,500! £109,500:Total assets $1fu93f1uu $ 933:500Liabilities and Equity Accounts payable 5 109,000 $ 32,000Income taxes payable 39,000 30,600Total current liabilities 143,000 112,600Equity Common stock, $2 par value 614,000 539,000Paid-in capital in excess of par value, common stock 20?,000 116,500Retained earnings 124,100 30,500 Total liabilities and equity 31,093,100 $ 933,600

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