Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. 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, and

$(5)$ any change in Income Taxes Payable reflects the accrual and cash payment of taxes.

GOLDEN CORPORATION

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $172,000$ $ $115,800$

Accounts receivable $95,00079,000$

Inventory $613,000534,000$

Total current assets $880,000728,800$

Equipment $356,500307,000$

Accumulated depreciation$$Equipment $(162,000)(108,000)$

Total assets $ $1,074,500$ $ $927,800$

Liabilities and Equity

Accounts payable $ $103,000$ $ $79,000$

Income taxes payable $36,00029,100$

Total current liabilities $139,000108,100$

Equity

Common stock, $$2$ par value $601,600576,000$

Paid$-$in capital in excess of par value, common stock $210,400172,000$

Retained earnings $123,50071,700$

Total liabilities and equity $ $1,074,500$ $ $927,800$

GOLDEN CORPORATION

Income Statement

For Current Year Ended December $31$

Sales $ $1,832,000$

Cost of goods sold $1,094,000$

Gross profit $738,000$

Operating expenses $($excluding depreciation$)502,000$

Depreciation expense $54,000$

Income before taxes $182,000$

Income taxes expense $33,200$

Net income $ $148,800$

Additional Information on Current Year Transactions

Purchased equipment for $$49,500$ cash.

Issued $12,800$ shares of common stock for $$5$ cash per share.

Declared and paid $$97,000$ in cash dividends.

Required:

Prepare a complete statement of cash flows using a spreadsheet under the indirect method.

Note: Enter all amounts as positive values.