Required information [The following information applies to the questions displayed below.] Golden Corp., a merchandiser, recently completed its 2017 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, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment docum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, 52 par value Pald-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 172.000 $ 115,800 95,000 79,000 613,000 534,000 880,000 728,800 356,500 307.000 (162,000). (108,000) $1,074,500 $ 927,800 $ $ 103,000 36.000 139,000 79,000 29,100 108, 100 600,000 204,000 123.500 $1,074,500 576,000 172,000 71,700 $ 927,800 GOLDEN CORPORATION tv MacBook Air % 5 6 8 9 0 O P GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,832,000 Cost of goods sold 1,094,000 Gross profit 738,000 Operating expenses Depreciation expense $ 54,000 Other expenses 502,000 556,000 Income before taxes 182,000 Income taxes expense 33,200 Net income $ 148,800 Additional Information on Year 2017 Transactions a. Purchased equipment for $49,500 cash. b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and paid $97,000 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.) For Yaar Ended December 31, 2017 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: Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year