Problem 16-4A Indirect: Statement of cash flows LO P1, P2, P3 Golden Corp., a merchandiser, recently completed its 2013 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, 2013 and 2012 2012 2013 Assets 203,000 144,000 Cash 98.000 74,000 Accounts receivable 621.000 536,000 Merchandise inventory 358,000 319.000 Equipment Accum, depreciation-Equipment $1,107,000 $959,000 Total assets Liabilities and Equity 87,000 81,000 Accounts payable 42.000 35.000 Income taxes payable 616.000 588.000 Common stock, $2 par value 212,000 170.000 Paid-in capital in excess of par value, common stock 150,000 85.000 Retained earnings $1,107,000 s 959,000 Total liabilities and equity GOLDEN CORPORATION Income Statement For Year Ended December 31, 2013 1,842,000 Sales 1.096.000 Cost of goods sold Gross profit 746,000 Operating expenses 59.000 Depreciation expense 504,000 563,000 Other expenses 183.000 Income before taxes 24,000 Income taxes expense Net income 159,000