Required information The following information applies to the questions displayed below. Golden Corp., a merchandiser, recently completed its 2018 operations. 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. The company's balance sheets and income statement follow. GOLDEN CORPORATION Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets $ 129,000 91,000 546,000 766,000 319,000 Cash 184,000 113,000 631,000 928,000 388,900 Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment (168,000) (114,000) $ 971,000 $1,148,900 Total assets Liabilities and Equity Accounts payable 91,000 127,000 48,000 175,000 35,100 126,100 Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 632,000 216,000 125,900 604,000 174,000 66,900 $971,000 $1,148,900 Total liabilities and equity GOLDEN CORPORATION Income Statement For Year Ended December 31, 2018 $1,892,000 1,106,000 786,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses $54,000 514,000 568,000 218,000 Income before taxes Income taxes expense 50,000 $ 168,000 Net income Additional Information on Year 2018 Transactions a. Purchased equipment for $69,900 cash. b. Issued 14,000 shares of common stock for $5 cash per share. c. Declared and paid $109,000 in cash dividends. Required: Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2018 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities $ 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 Net increase (decrease) in cash $ 0 Cash balance at December 31, 2017 $ 0 Cash balance at December 31, 2018