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 inc GOLDEN CORPORATION Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Cash Accounts receivable Inventory $ 205,000 96,000 619,000 $ 141,000 73,000 535,000 Total current assets Equipment Accum. depreciation Equipment 920,000 355,000 (171,000) 749,000 317,000 (113,000) Total assets $1,104,000 $ 953,000 Liabilities and Equity Accounts payable Income taxes payable 96,000 $ 80,000 40,000 34,000 136,000 114,000 Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 612,000 208,000 148,000 586,000 169,000 84,000 Total liabilities and equity $1,104,000 $ 953,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2015 Sales Cost of goods sold $ 1,837,000 1,095,000 742,000 Gross profit Operating expenses Depreciation expense Other expenses $ 58,000 503,000 561,000 Income before taxes Income taxes expense 181,000 24,000 Net income $ 157,000 Additional Information on Year 2015 Transactions a. Purchased equipment for $38,000 cash. b. Issued 13,000 shares of common stock for $5 cash per share. c. Declared and paid $93,000 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: Cash flows from investing activities: Cash flows from financing activities: Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year