Direct method operating activities only

Indirect: Statement of cash flows 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. -2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment (158,000) (104.000) Total assets Liabilities and Equity $ 164,000 $107,000 83,000 71,000 601000526,000 848,000 704,000 335,000 299,000 $1,025,000 $899,000 $ 87,000 71,000 28.000 25,000 115,000 96,000 Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess 592,000 568,000 196,000 160,000 $1,025,000 $899,000 of par value, common stock Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses $1,792,000 1086,000 706,000 Depreciation expense Other expenses Income before taxes 54,000 494.000 548,000 158,000 Income taxes expense Net income $ 136,000 Page 708 Additional Information on Year 2017 Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,o00 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. Direct: Statement of cash flows Refer to Golden Corporation's financial statements and related information in Problem 16-6A. Required Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method