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. Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 2017 2016 $ 175,000 99,500 617,500 $ 119,100 82,000 537,000 892,000 738,100 364,600 (163,500) $1,093,100 $ 109,000 39,000 310,000 (109,500) $ 938,600 $ 82,000 30,600 148,000 112,600 614,000 579,000 207,000 176,500 124,100 70,500 $1,093,100 $ 938,600 Sales GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Cost of goods sold Gross profit Operating expenses Other expenses Depreciation expense Income before taxes Income taxes expense Net income $1,847,000 1,097,000 750,000 $ 54,000 505,000 559,000 191,000 37,400 $ 153,600 Additional Information on Year 2017 Transactions a. Purchased equipment for $54,600 cash. b. Issued 13,100 shares of common stock for $5 cash per share. c. Declared and paid $100,000 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. (Amounts to be deducted should be indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Net income $ 153,600 Adjustments to reconcile net income to net cash provided by operations: $ 153,600 Cash flows from investing activities: Cash flows from financing activities: 0 Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 0 $ 153,600 $ 153,600