k Golden Corporation'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, and (5) 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 $ 181,000 $ 125,700 108,500 88,000 nces Assets Cash Accounts receivable. Inventory Total current assets Equipment Accumulated 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 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Incone before taxes Income taxes expense $1,877,000 1,103,000 774,000 511,000 54,000 209,000 45,800 626,500 916,000 380,800 (166,500) $ 1,130,300 $ 121,000 543,000 756,700 316,000 (112,500) $ 960,200 $ 88,000 33,600 45,000 166,000 121,600 612,400 585,000 226,600 185,500 125,300 68,100 $ 1,130,300 $ 960,200 Net income $ 163,200 Additional Information on Current Year Transactions a. Purchased equipment for $64,800 cash. b. Issued 13,700 shares of common stock for $5 cash per share. c. Declared and paid $106,000 in cash dividends. $ Required: Prepare a complete statement of cash flows using the indirect method for the current year. Note: 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 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in taxes payable $ 163,200 54,000 (20,500) (83,500) 33,000 11,400 AUTUSTUS IO TECUTURE TELLURE to the Labi DIOVIDED BY Required information Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Increase in accounts payable Increase in taxes payable Net cash provided by operating activities (20,500) (83,500) 33,000 11,400 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 157,600 0 $ 157,600 $ 157,600 0