Required information [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 Assets Cashi 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! $ 173,000 96,500 $ 116,900 80,000 614,500 884,000 535,000 731,900 $ 1,080,700 $ 105,000 37,000 359,200 (162,500) 308,000 (108,500) $ 931,400 $ 80,000 29,600 142,000 109,600 602,800 577,000 212,200 173,500 123,700 71,300 $ 1,080,700 $ 931,400 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 $51,200 cash. $ 1,837,000 1,095,000 742,000 503,000 54,000 185,000 34,600 $ 150,400 b. Issued 12,900 shares of common stock for $5 cash per share. c. Declared and paid $98,000 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. GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 311 Analysis of Changes December 31, Prior December 31, Year Current Year Debit Credit Balance sheet-debit balance accounts Cash $ 116,900 $ 56,100 Accounts receivable 80,000 $ 16,500) S 173,000 96,500 Inventory 535,000 79,500 614,500 Equipment 308,000 51,200 $ 1,039,900 359,200 $ 1,243,200 Balance sheet-credit balance accounts Accumulated depreciation-Equipment $ 108,500 $ 54,000 $ 162,500 Accounts payable 80,000 25,000 105.000 Income taxes payable 29,600 7,400 37,000 Common stock, $2 par value 577,000 25,800 602,800 Paid-in capital in excess of par value, common stock 173,500 38,700 212.200 Retained earnings 71,300 98,000 150,400 123,700 $ 1,039,900 $ 1,243,200 Statement of cash flows Operating activities Required information Accumulated depreciation-Equipment $ 108,500 $ 54,000 $ 162,500 Accounts payable 80,000 25,000 105,000 Income taxes payable 29,600 7,400 37,000 Common stock, $2 par value 577,000 25,800 602,800 Paid-in capital in excess of par value, common stock 173,500 38,700 212,200 Retained earnings 71,300 98,000 150,400 123,700 $ 1,039,900 $ 1,243,200 Statement of cash flows Operating activities Net income Depreciation expense 150,400 54,000 Increase in accounts receivable 16,500 Increase in inventory 79,500 Increase in accounts payable 25,000 Decrease in income tax payable 7,400 Investing activities Payment for equipment 51,200 Financing activities Paid cash dividends Issued common stock for cash. 98,000 64,500 56,100 $ 602,600 $ 602,600