Problem 12-6A Indirect: Statement of cash flows LO P1, P2, P3 Golden Corp., a merchandiser, recently completed its 2015 operations. 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. The company's balance sheets and income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Cash Accounts receivable Inventory $ 217,000 $153,000 77,000 627,000 539,000 91,000 Total current assets Equipment Accum. depreciation-Equipment 935,000 769,000 367,000 325,000 (179,000) (117,000) Total assets $1,123,000 $977,000 Liabilities and Equity Accounts payable Income taxes payable $ 93,000 $ 84,000 38,000 48,000 Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 141,000 122,000 618,000 594,000 209,000 173,000 88,000 155,000 Total liabilities and equity $1,123,000 $977,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $1,857,000 1,099,000 758,000 Gross profit Operating expenses $ 62,000 507,000 Depreciation expense Other expenses 569,000 Income before taxes Income taxes expense 189,000 25,000 Net income $ 164,000 Additional Information on Year 2015 Transactions a. Purchased equipment for $42,000 cash b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $97,000 in cash dividends Required: Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2015 Cash flows from operating activities Net Income Adjustments to reconcile net income to net cash provided by operations: Depreciation expense Accounts receivable increase Inventory increase Accounts payable increase Income taxes payable increase Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Net cash used in financing activities Cash flows from financing activities 0 Cash received from stock issuance Cash paid for cash dividends Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of vear