Golden Corp'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 $ 180,000 $ 124,600 Accounts receivable 1e, eee 87,000 Inventory 625,000 542,000 Total current assets 912,000 753,600 Equipment 378, 100 315,000 Accum. depreciation-Equipment (166,000 (112,000) Total assets $1,124,100 $ 956,600 Liabilities and Equity Accounts payable $ 119,000 $ 87,000 Income taxes payable 44,000 33, 100 Total current liabilities 163,000 120, 100 Equity 912,00 378,100 (166.000 $1,124,100 153,6 315,000 (112,000) $ 956,600 Total current assets Equipment Accum. 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 $ 119, eee 44,000 163,000 $ 87,000 33,100 120,100 611,200 224,800 125, 100 $1,124,100 584,000 184,000 68,500 $956,600 GOLDEN CORPORATION Income Statenent 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 $1,872,000 1,102,000 770,000 510,000 54,000 206,000 44,400 $ 161,600 Additional Information on Current Year Transactions Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 510,000 54,000 206,000 44,400 $ 161,600 Additional Information on Current Year Transactions a. Purchased equipment for $63,100 cash b. Issued 13,600 shares of common stock for $5 cash per share. c. Declared and paid $105,000 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 Not incomo $ 161,600 Net income S 161,600 Adjustments to reconcile not income to not cash provided by operations. Income statement items not affecting cash Increase in accounts receivable Changes in current assets and current liabilities $ 161,600 Cash flows from investing activities 0 Cash flows from financing activities: S 151,600 Cash flows from investing activities 0 Cash flows from financing action 0 161,000 $ Not increase (decrease in canh Cash balance in December 31, prior year Cash balance at December 31, current year $ 161,000
