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 $ 104,000 113,000 631,000 928,000 308, 900 (168,0001 $1,148.900 $ 129,000 91,000 $46,000 766,000 319,000 (114,000) $971.000 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, 52 par value Paid-in capital in excess of par value, common stock Retained earning Total liabilities and equity $ $ 127,000 48,000 175,000 91,000 25, 100 126, 100 616,000 232,000 125, 900 $1,148,900 588,000 190,000 66,900 $ 971,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Coat of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 $1,892,000 1,106,000 786,000 48,000 175,000 35, 100 126, 100 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 616,000 222,000 125,900 $1,148,900 588,000 190,000 66.900 $ 971,000 $1,892,000 1,106,000 786,000 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 514,000 Income before taxes Income taxes expense Net income 568,000 218,000 50,000 $ 168,000 I Additional Information on Current Year Transactions a. Purchased equipment for $69.900 cash. b. Issued 14,000 shares of common stock for $5 cash per share. c. Declared and paid $109,000 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 168.000 Adjustments to reconcile net income to net cash provided by operations: Accounts receivable increase Inventory increase Accounts payable increase Income taxes payable increase Depreciation expense $ 168.000 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 stook issuance Cash paid for cash dividends 0 108,000 $ 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 $ 188,000