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 2014 Assets Cash Accounts receivable Inventory $ 202,000 129,000 88,000 69,000 611,000 531,000 Total current assets 901,000 729,000 343,000 309,000 (163,000) (109,000) Equipment Accum. depreciation Equipment Total assets $1,081,000 $929,000 Liabilities and Equity Accounts payable Income taxes payable $ 88,000 $ 76,000 38,000 30,000 Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 126,000 106,000 606,000 578,000 207,000 165,000 142,000 80,000 $1,081,000 $929,000 Total liabilities and equity GOLDEN CORPORATION Income Statement For Year Ended December 31, 2015 $1,817,000 1,091,000 Sales Cost of goods sold 726,000 Gross profit Operating expenses Depreciation expense Other expenses $54,000 499,000 553,000 Income before taxes Income taxes expense 173,000 22,000 $ 151,000 Net income Additional Information on Year 2015 Transactions a. Purchased equipment for $34,000 cash. b. Issued 14,000 shares of common stock for $5 cash per share c. Declared and paid $89,000 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: 0 Net increase (decrease) in cash 0 Cash balance at beginning of year Cash balance at end of year