Required information Golden Corp., a merchandiser, recently completed its 2017 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, 2017 and 2016 2016 2017 Assets Cash $ 180,000 124, 600 107,000 625,000 912,000 378,100 (166,000) (112,000) Accounts receivable 87,000 542,000 753, 600 315,000 Inventory Total current assets Equipment Accum. depreciation-Equipment $1,124,100 $ 956, 600 Total assets Liabilities and Equity Accounts payable Income taxes payable $ 119,000 87,000 44,000 33,100 Total current liabilities 163,000 120,100 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 624,000 212,000 125,100 584,000 184,000 68,500 $1,124,100 956, 600 Total liabilities and equity GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,872,000 1,102,000 770,000 Cost of goods sold Gross profit Operating expenses Depreciation expense s 54,000 510,000 564,000 206,000 44, 400 Other expenses Income before taxes Income taxes expense $ 161, 600 Net income Additional Information on Year 2017 Transactions a. Purchased equipment for $63,100 cash. b. Issued 13,600 shares of common stock for $5 cash per share c. Declared and paid $105,000 in cash dividends Required: Prepare a complete statement of cash flows, report its cash flows from operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.) Additional Information on Year 2017 Transactions a. Purchased equipment for $63,100 cash. b. Issued 13,600 shares of common stock for $5 cash per share. c. Declared and paid $105,000 in cash dividends. Required Prepare a complete statement of cash flows; report its cash flows from operating activities ac to be deducted should be indicated with a minus sign.) cording to the direct method. (Amounts GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year