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 $164,000 83,000 601, one 848,000 335, eee (158,000) $1,025,000 $ 107, eee 71, cee 526,00 784, eee 299, ece (184, 000) $ 899,000 Assets Cash Accounts receivable Inventory 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 $ 87,000 28,000 115, eee $ 71,000 25,000 96,000 592,000 196, eee 122, oee $1,025, oee 568,eee 160, eee 75, eee $ 899,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 Other expenses 494,000 Income before taxes Income taxes expense Net income $1,792,000 1,086, 000 706, eee 548,000 158,000 22,000 $ 136,000 Additional Information on Current Year Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 in cash dividends. 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 December 31, Prior Debit Year Credit December 31 Current Year Balance sheet debit balance accounts $ $ 164,000 Cash Accounts receivable Inventory Equipment 107,000 71,000 526.000 299,000 $ 1,003.000V $ 164.000 $ Balance sheet credit balance accounts Accumulated depreciation Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock 104,000 71,000 25,000 568,000 160,000 Retained earnings 75,000 1,003,000 $ 0 Statement of cash flows Operating activities Investing activities Financing activities $ 0 $ 0 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 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
