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 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 169,ee0 112,500 76,000 531,000 719,500 304,000 ( ) (106,500) $1,055,900 917,000 90,580 608,500 868,000 348,400 160,500 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 $97,000 76,000 33,000 27,600 103,600 130,000 573,000 167,580 72.900 $1,055,900 $ 917,000 602,000 201,000 122,900 Total liabilities and equity GOLDEN CORPORATION Income Statenent Year Ended Sales Cost of goods sold Gross profit Operating expenses $1,817,0e0 1,991,000 726,000 Depreciation expense s 54,000 499,900 Other expenses Income before taxes Income taxes expense Net incone 553,000 173,000 29,000 $ 144,000 dditional Information on Year 2017 Transactions Required information a. Purchased equipment for $44,400 cash. b. Issued 12,500 shares of common stock for $5 cash per share. c. Declared and paid $94,000 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 $ 144,000 Adjustments to reconcile net income to net cash provided by operations Income taxes payable increase Depreciation expense 29,000 54,000 S 227,000 Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash 227.000