30 Required information 3.43 points Use the following information for the Problems below. (Algo) (The following information applies to the questions displayed below.) Golden Corp.'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 Current Year Prior Year $ 169,000 90,500 608,500 868,000 348,400 (160,500) $1,055,900 $ 112,500 76,000 531,000 719,500 304,000 (106,500) $ 917,000 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts ible 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 $ $ 97,000 33,000 130,000 76,000 27,600 103,600 598,000 205,000 122,900 $1,055,900 573,000 167,500 72,900 $ 917,000 vuzue, COLULULI LUCA 30 Iuu-11 cuplus 11. CALCOO UL puu Retained earnings Total liabilities and equity 122,900 $1,055,900 IU!JUU 72,900 $ 917,000 3.43 points GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $1,817,000 1,091,000 726,000 499,000 54,000 173,000 29,000 144,000 Additional Information on Current Year Transactions a. Purchased equipment for $44,400 cash. b. Issued 12,500 shares of common stock for $5 cash per share. c. Declared and paid $94,000 in cash dividends. Problem 12-6A (Algo) Indirect: Statement of cash flows LO P2, P3 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) 30 Answer is not complete. GOLDEN CORPORATION Statement of Cash Flows 3.43 For Current Year Ended December 31 points Cash flows from operating activities Net income 144,000 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 Increase in taxes payable $ 144,000 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment 0 Net cash used in investing activities Cash flows from financing activities: Cash paid for cash dividends Cash received from stock issuance Net cash used in financing activities . 0 Inroma statement items not attarting rach 30 Required information Hunyo VUITUILUJJW Ulu VUITUI IL HUVILIVU Increase in accounts receivable 3.43 points Increase in inventory Increase in accounts payable Increase in taxes payable > $ 144,000 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment 0 Net cash used in investing activities Cash flows from financing activities: Cash paid for cash dividends Cash received from stock issuance 0 $ 144,000 Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 144,000