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 $31$

Current Year Prior Year

Assets

Cash $ $165,000$ $ $108,100$

Accounts receivable $84,50072,000$

Inventory $602,500527,000$

Total current assets $852,000707,100$

Equipment $337,600300,000$

Accumulated depreciation$$Equipment $(158,500)(104,500)$

Total assets $ $1,031,100$ $ $902,600$

Liabilities and Equity

Accounts payable $ $89,000$ $ $72,000$

Income taxes payable $29,00025,600$

Total current liabilities $118,00097,600$

Equity

Common stock, $$2$ par value $593,200569,000$

Paid$-$in capital in excess of par value, common stock $197,800161,500$

Retained earnings $122,10074,500$

Total liabilities and equity $ $1,031,100$ $ $902,600$

GOLDEN CORPORATION

Income Statement

For Current Year Ended December $31$

Sales $ $1,797,000$

Cost of goods sold $1,087,000$

Gross profit $710,000$

Operating expenses $($excluding depreciation$)495,000$

Depreciation expense $54,000$

Income before taxes $161,000$

Income taxes expense $23,400$

Net income $ $137,600$

Additional Information on Current Year Transactions

Purchased equipment for $$37,600$ cash.

Issued $12,100$ shares of common stock for $$5$ cash per share.

Declared and paid $$90,000$ in cash dividends.

Problem $16-6$A $($Algo$)$ Indirect: Statement of cash flows LO P$2,$ P$3$

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.

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