Golden Corp., a merchandiser, recently completed its 2016 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 companys balance sheets and income statement follow.

GOLDEN CORPORATION Comparative Balance Sheets December 31, 2016 and 2015
	2016					2015
Assets
Cash	$	166,822			$	112,140
Accounts receivable		88,972				77,430
Inventory		584,381				512,640
Total current assets		840,175				702,210
Equipment		319,489				285,690
Accum. depreciationEquipment		(148,624	)			(97,900	)
Total assets	$	1,011,040			$	890,000
Liabilities and Equity
Accounts payable	$	66,729			$	92,560
Income taxes payable		26,287				23,140
Total current liabilities		93,016				115,700
Equity
Common stock, $2 par value		571,000				519,000
Paid-in capital in excess of par value, common stock		228,550				155,750
Retained earnings		118,474				99,550
Total liabilities and equity	$	1,011,040			$	890,000

GOLDEN CORPORATION Income Statement For Year Ended December 31, 2016
Sales				$	1,960,000
Cost of goods sold					882,000
Gross profit					1,078,000
Operating expenses
Depreciation expense	$	50,724
Other expenses		369,558			420,282
Income before taxes					657,718
Income taxes expense					128,255
Net income				$	529,463

Additional Information on Year 2016 Transactions

Purchased equipment for $33,799 cash.

Issued 26,000 shares of common stock for $4.80 cash per share.

Declared and paid $510,539 in cash dividends.

Required:

Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method.