2 12.5 points Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. 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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Sales GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation Income before taxes Income taxes expence Net incone Additional Information on Current Year Transactions a. Purchased equipment for $52,900 cash. $ 1,842,000 1,096,000 b. Issued 13,000 shares of common stock for $5 cash per share. c. Declared and paid $99,000 in cash dividends 746,000 504,000 54,000 100,000 36,000 152,000 Current Year Prior Year $174,000 $ 118,000 98,000 81,000 616,000 536,000 888,000 735,000 361,900 309,000 (163,000) $ 1,086,900 $107,000 38,000 (109,000) $ 935,000 145,000 $1,000 30,100 111,100 604,000 578,000 214,000 175,000 123,900 70,900 $ 1,086,900 935,000 2 Required Information Prepare a complete statement of Cast Rows using the indirect me for the current year. Amounts to be acted snoura indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Book Cash flows from operating activities n Print 0 rences Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Increase in accounts payable 54,000 Increase in taxes payable Net cash provided by operating activities $ 54,000 Cash flows from investing activities Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash received from stock issuance Cash paid for cash dividends Net cash used in financing activities Net increase (decrease) in cash $ 0 54,000 Cash balance at December 31, prior year Cash balance at December 31, current year $ 54,000