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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

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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 $ 175,000 99,500 617,500 892,000 364,600 163,500) $1,093, 100 $ 119, 100 82,000 537,000 738,100 310,000 (109,500) $ 938, 600 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, 32 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 109,000 39,000 148,000 $82,000 30, 600 112,600 605,200 215,800 124,100 $1,093, 100 579,000 176,500 70,500 $ 938,600 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,147,000 Cost of goods sold 1,097,000 Gross profit 750,000 Operating expenses Depreciation expense $ 54,000 Other expenses 505,000 559,000 Income before taxes 191,000 Income taxes expense 37,400 Net income $ 153,600 Additional Information on Current Year Transactions a. Purchased equipment for $54,600 cash. b. Issued 13,100 shares of common stock for $5 cash per share. c. Declared and paid $100,000 in cash dividends. Problem 16-6A Indirect: Statement of cash flows LO P2, P3 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 vear

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