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 $ 178,000 184,000 622,000 994,000 372,700 (165,000) $1,111,700 $ 122,400 85,eee 540,000 747,400 313,000 (111,000) $ 949,400 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, connon stock Retained earnings Total liabilities and equity $ 115,000 42, Bee 157,000 $ 85, eee 32,100 117,100 688,880 221,280 124,700 $ 1,111,789 582,00 181,880 69,300 $949,400 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,862,000 1,180, cee 762,000 588,000 54,800 200,000 41,600 $ 158,488 GOLDEN CORPORATION Incone Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,862,000 1.100.000 762,800 508,000 54, see 200,000 41,600 $ 158,480 Additional Information on Current Year Transactions a. Purchased equipment for $59,700 cashy b. Issued 13.400 shares of common stock for $5 cash per share, c. Declared and paid $103,000 in cash dividends. Required: Prepare a complete statement of cash flows using the indirect method for the current year (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 RIPTOR MIRTIAN Required information 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 Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in taxes payable $ 0 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment 0 Net cash used in investing activities Cash flows from financing activities: Cash received from stock issuance Cash paid for cash dividends 67,000 (103,000) $ Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (36.000) (36,000) 122.400 86,400 $
