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, (5) Other Expenses are all cash expenses, and (6) 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 $ 113,600 Accounts receivable $ 170,000 92,000 610,000 77,000 532,000 Inventory Total current assets 872,000 Equipment 351,100 722,600 305,000 (107,000) $ 920,600 Accum. depreciation-Equipment (161,000) Total assets $1,062,100 Liabilities and Equity Accounts payable 99,000 $ 77,000 Income taxes payable 34,000 28,100 Total current liabilities 133,000 105,100 Equity Common stock, $2 par value 599,200 574,000 206,800 169,000 Paid-in capital in excess of par value, common stock Retained earnings 123,100 72,500 Total liabilities and equity $1,062,100 $ 920,600 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $ 54,000 500,000 Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $1,822,000 1,092,000 730,000 554,000 176,000 30,400 $ 145,600 Additional Information on Current Year Transactions a. Purchased equipment for $46,100 cash. b. Issued 12,600 shares of common stock for $5 cash per share. c. Declared and paid $95,000 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 Adjustments to reconcile net income to net cash provided by operations: 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 Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts as positive values.) GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes Debit December 31, Prior Year Credit December 31, Current Year Balance sheet-debit balance accounts Cash $ 113,600 $ Accounts receivable 77,000 Inventory 532,000 Equipment 305,000 $ 1,027,600 Balance sheet-credit balance accounts Accumulated depreciation-Equipment $ 107,000 Accounts payable 77,000 Income taxes payable 28,100 Common stock, $2 par value 574,000 Paid-in capital in excess of par value, common stock 169,000 Retained earnings 72,500 1,027,600 Statement of cash flows. $ 170,000 Statement of cash flows Operating activities Investing activities Financing activities a. Purchased equipment for $46,100 cash. b. Issued 12,600 shares of common stock for $5 cash per share. c. Declared and paid $95,000 in cash dividends. Required: Prepare a complete statement of cash flows using the direct 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 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