a. Purchased equipment for $41,000 cash. b. Issued 12,300 shares of common stock for $5 cash per share. c. Declared and paid $92,000 in cash dividends. Required information Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 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 Comparative Balance Sheets December 31 Current Year Prior Year Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit GOLDEN CORPORATION Income Statement For Current Year Ended December 31 $ 1,807,000 1,089,000 718,000 497,000 54,000 167,000 26,200 $ 140,800 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income Additional Information on Current Year Transactions a. Purchased equipment for $41,000 cash. b. Issued 12,300 shares of common stock for $5 cash per share. c. Declared and paid $92,000 in cash dividends. $ 167,000 87,500 605,500 860,000 343,000 (159,500) $ 1,043,500 $ 93,000 31,000 $ 110,300 74,000 529,000 713,300 302,000 (105,500) $ 909,800 $ 74,000 26,600 124,000 100,600 595,600 571,000 201,400 164,500 122,500 73,700 $ 1,043,500 $ 909,800