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 Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities $ 168,000 89,000 6e7,000 864, eee 345,700 (169, eee) $1,049.700 $ 111, 4ee 75.000 530, eee 716,400 303,00 (106, 000) $ 913,400 $ 95, eee 32,000 127,000 $75,000 27, 100 102, 100 Check my 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 $ 168, eee 89,000 607, eee 864,000 345,780 (160,000 $1,049, 7ee $ 111,400 75,00 53e, eee 716,400 383,000 (106, eee) $ 913, 4ee 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 $ 95,000 32,000 127.ee $ 75,aee 27,100 102,100 596,800 203,200 122.7ee 51,849,700 572.ee 166,00 73,300 $ 913,400 GOLDEN CORPORATION 8 PE + TOLD DILILIes and equity 1,049, 00 > GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54, eee Other expenses 498,000 Income before taxes Income taxes expense Net income $1,812,000 1,090,000 722,000 552,000 170,000 27,600 $ 142, 480 Additional Information on Current Year Transactions a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share, c. Declared and paid $93,000 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.) of 2 GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income $ 542.400 Adjustments to reconcile not income to net cash provided by operations Depreciation expense Inventory increase Accounts payable increase Income taxes payable increase 5 142.100 1 Required information Part 1 of 2 For Current Year Ended December 31 Cash flows from operating activities Net income S 142.400 Adjustments to reconcile not income to net cash provided by operations Depreciation expense Inventory increase Accounts payable increase Income taxes payable increase Book 142,400 Cash flows from investing activities Cash paid for equipment Cash flows from financing activities 1 Required information Cash flows from investing activities 1 of 2 Cash paid for equipment 0 Cash flows from financing activities: Book Cash paid for cash dividends 142,400 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 142,400 Required information 2 Accounts payable decrease Accounts payable increase Accounts receivable decrease Accounts receivable increase Cash paid for cash dividends Net increase (decrease) in cash Required information Cash paid for cash dividends Cash paid for equipment Cash received from stock issuance Depreciation expense Income taxes payable decrease Cash paid for cash dividends ! Required information Income taxes payable increase Inventory decrease Inventory increase Notes payable long-term decrease Notes payable long-term increase Cash paid for cash dividends 1 ! Required information Notes payable long-term increase Prepaid expense decrease Prepaid expense increase Salaries payable decrease Salaries payable increase Cash paid for cash dividends