Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. 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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets 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 GOLDEN CORPORATION Income Statement. For Current Year Ended December 31 Sales Cost of goods sold Gross profit Income before taxes: Operating expenses (excluding depreciation) Depreciation expense $ 1,817,000 1,091,000 726,000 499,000 54,000 173,000 Income taxes expense Net income Additional Information on Current Year Transactions 29,000 $144,000 Current Year Prior Year $ 169,000 $112,500 90,500 76,000 608,500 531,000 868,000 719,500 348,400 304,000 (160,500) $ 1,055,900 $ 97,000 33,000 (106,500) $ 917,000 $ 76,000 27,600 130,000 103,600 598,000 573,000 205,000 167,500 122,900 72,900 $ 1,055,900 $ 917,000 Additional Information on Current Year Transactions 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 using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Increase in inventory Changes in current assets and current liabilities Cash flows from investing activities $ 158,400 (19,000) $ 139,400 Income statement items not affecting cash Increase in inventory Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (19,000) 4 139,400 0 $ 139,400 $ 139,400 0