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. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. 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 $ 165,000 84,500 602,500 $108,100 72,000 527,000 852,000 707,100 337,600 (158,500) 300,000 (104,500) $1,031,100 $ 89,000 29,000 $ 902,600 $ 72,000 25,600 97,600 569,000 118,000 593,200 197,800 161,500 122,100 74,500 $1,031,100 $902,600 Check my work 3 Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $1,797,000 1,087,000 710,000 Operating expenses Depreciation expense $ 54,000 Other expenses 495,000 549,000 Income before taxes: 161,000 Income taxes expense 23,400 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. 22,200 $1,031,100 14,300 $ 902,600 Required: Prepare a complete statement of cash flows using the Indirect method for the current year. (Amounts to be deducted should indicated with a minus sign.) Required: Required information nces Mc Graw 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: Cash flows from investing activities Cash flows from financing activities: $ 0 0