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Prepare a complete statement of cash flows using the indirect method for the current year. Golden Corp.'s current year income statement, comparative balance sheets, and

Prepare a complete statement of cash flows using the indirect method for the current year.

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

$

166,000

$

109,200

Accounts receivable

86,000

73,000

Inventory

604,000

528,000

Total current assets

856,000

710,200

Equipment

340,300

301,000

Accum. depreciationEquipment

(159,000

)

(105,000

)

Total assets

$

1,037,300

$

906,200

Liabilities and Equity

Accounts payable

$

91,000

$

73,000

Income taxes payable

30,000

26,100

Total current liabilities

121,000

99,100

Equity

Common stock, $2 par value

594,400

570,000

Paid-in capital in excess of par value, common stock

199,600

163,000

Retained earnings

122,300

74,100

Total liabilities and equity

$

1,037,300

$

906,200

GOLDEN CORPORATION

Income Statement

For Current Year Ended December 31

Sales

$

1,802,000

Cost of goods sold

1,088,000

Gross profit

714,000

Operating expenses

Depreciation expense

$

54,000

Other expenses

496,000

550,000

Income before taxes

164,000

Income taxes expense

24,800

Net income

$

139,200

Additional Information on Current Year Transactions

  1. Purchased equipment for $39,300 cash.

  2. Issued 12,200 shares of common stock for $5 cash per share.

  3. Declared and paid $91,000 in cash dividends.

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