Golden Corp.. a merchandiser, recently completed its 2017 operations. For the year. (1) all sales are credit Problem 12-6A sales. (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of in- Indirect: Statement ventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other of cash flows Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the acerual and cash P1 P2 P3 payment of taxes. The company's balance sheets and income statement follow. GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets. Equipment Accum. depreciation Equipment Total assets $164,000 83,000 601.000 848.000 335,000 (158.000) $1,025,000 $107.000 71.000 526.000 704,000 299,000 (104.000) $899.000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities $ 87,000 28,000 115,000 $ 71,000 25,000 96,000 1797.00 108600 700.000 592,000 568,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense. Other expenses Income before taxes Income taxes expense Net Income Equity Common stock, $2 par value Pald-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 54,000 494.000 196,000 122,000 $1,025.000 160,000 75,000 $899.000 568,000 158.000 22000 5 136,000 Chapter 12 Reporting Cash Flows 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 $89.000 in cash dividends. Required Prepare a complete statement of cash flows, report its cash inflows and cash outflows from operating ac- tivities according to the indirect method. operating 10