purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Current Year Prior Year $ 172,000 $ 115,800 95,000 79,000 613,000 880,000 356,500 (162,000) 534,000 728,800 307,000 (108,000) $ 927,800 $ 1,074,500 $ 103,000 $ 79,000 36,000 29,100 139,000 108,100 601,600 576,000 210,400 172,000 123,500 71,700 $ 1,074,500 $ 927,800 Sales GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income Additional Information on Current Year Transactions a. Purchased equipment for $49,500 cash. $ 1,832,000 1,094,000 738,000 502,000 54,000 182,000 33,200 $ 148,800 b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and paid $97,000 in cash dividends. Problem 12-6A (Algo) Indirect: Statement of cash flows LO P2, P3 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities W: Ch 12 Statement of Cash Flows - Financing i 7 Required information Changes in current assets and current liabilities 5 boints eBook Print References Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year Saved