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 Accounts receivable Inventory Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current abilities Equity Common stock $2 par value Paid in capital in excess of par value common stock $ 183,000 111,500 629 500 924,800 385,200 (167500) $1. 142.700 $ 127,900 90,000 545,000 762,900 318,000 13,500) 5967.40 $25.000 47.000 172,000 $ 90,000 34,600 124.600 6140 230,200 587.000 188, so Help 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 $ 183,000 111,500 629,500 924, eee 386,200 (167,500) $1,142,780 $ 127,980 90,000 545,000 762,900 318,000 (113,500) $ 967,400 $ 125,000 47,000 172,000 $ 90,000 34,600 124,600 614,800 230,200 125,700 $1,142,700 587,000 188,500 67,300 $ 967,400 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 513,000 Income before taxes Income taxes expense Net Incom $1,057,000 1,105,000 782,000 56700 215,000 49,600 $ 166,400 Additional Information on Current Year Transactions o. Purchased equipment for $68,200 cash. b. Issued 13,900 shares of common stock for $5 cash per share. c. Declared and paid $108,000 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 Required information 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 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
