Required information [The following information applies to the questions displayed below.) Golden Corp.'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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Prior Year GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Assets Cash $ 165,000 Accounts receivable 84,500 Inventory 602,500 Total current assets 852,000 Equipment 337,600 Accum. depreciation-Equipment (158,500) Total assets $1,031,100 Liabilities and Equity Accounts payable $ 89,000 Income taxes payable 29,000 Total current liabilities 118,000 Equity Common stock, $2 par value 593,200 Paid-in capital in excess of par value, common stock 197,800 Retained earnings 122,100 Total liabilities and equity $1,031,100 $ 108, 100 72,000 527,000 707,100 300,000 (104,500) $ 902,600 $ 72,000 25,600 97,600 569,000 161,500 74,500 $ 902,600 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,797,000 Cost of goods sold 1,087,000 Gross profit 710,000 Operating expenses Depreciation $ 54,000 expense Other expenses 495,000 549,000 Income before 161,000 taxes Income taxes 23,400 expense Net income $ 137,600 Additional Information on Current Year Transactions a. Purchased equipment for $37,600 cash. b. Issued 12,100 shares of common stock for $5 cash per share. c. Declared and paid $90,000 in cash dividends. 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: $ 0 Cash flows from investing activities 0 Cash flows from financing activities: $ 0 0 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0 Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts as positive values.) December 31, Current Year $ 165,000 GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Debit Credit Prior Year Balance sheet-debit balance accounts Cash $ 108,100 Accounts receivable 72,000 Inventory 527,000 Equipment 300,000 $ 1,007,100 Balance sheet credit balance accounts Accumulated depreciationEquipment $ 104,500 Accounts payable 72,000 Income taxes payable 25,600 Common stock, $2 par value 569,000 Paid-in capital in excess of par value, common stock 161,500 Retained earnings 74,500 $ 1,007,100 Statement of cash flows Operating activities $ 165,000 $ Investing activities Financing activities $ 0 $ 0
