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 companys balance sheets and income statement follow.

Additional Information on Year 2017 Transactions

a. Purchased equipment for $69,900 cash.

b. Issued 14,000 shares of common stock for $5 cash per share.

c. Declared and paid $109,000 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 Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets $ 184,000 $ 129,000 91,000 546,000 766,000 319,000 114,000 $1,148,900 $ 971,000 113,000 631,000 928,000 388,900 168,000 Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 127,000 $ 91,000 35.100 126,100 48,000 175,000 588,000 190,000 66,900 $1,148,900 971,000 632,000 216,000 125,900 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,892,000 1,106,000 786,000 $ 54,000 514,000 Depreciation expense Other expenses Income before taxes Income taxes expense Net income 568,000 218,000 50,000 $ 168,000