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 Current Year Prior Year Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation Equipment $ 173,000 96,500 614,500 884,000 359, 200 (162,500) $1,080, 700 $ 116,900 80,000 535,000 731,900 308,000 (108,500) $ 931,400 $ $ 105,000 37,000 142,000 80,000 29,600 109,600 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 602,800 212,200 123,700 $1,080, 700 577,000 173,500 71,300 $ 931,400 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,837,000 Cost of goods sold 1,095,000 Gross profit 742,000 Operating expenses Depreciation expense $ 54,000 Other expenses 503,000 557,000 Income before taxes 185,000 Income taxes expense 34,600 Net income $ 150,400 Additional Information on Current Year Transactions a. Purchased equipment for $51,200 cash. 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 the direct method for the current year. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash received from customers $ 150,400 X Cash paid for inventory 54,000 X Cash paid for other expenses (16,500) Cash paid for income taxes (79,500) X Wololol $ 10 108,400 x x 0 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash provided by investing activities Cash flows from financing activities Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year x x 0 108,400 $ $ 108,400
