Required information Use the following information for the Problems below. (Algo) [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, and (5) 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 Total current assets $ 170,000 92,000 $ 113,600 77,000 Inventory Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable 610,000 872,000 351,100 (161,000) $1,062,100 $ 99,000 Income taxes payable 34,000 532,000 722,600 305,000 (107,000) $ 920,600 $ 77,000 28,100 Total current liabilities 133,000 105,100 Equity Common stock, $2 par value 599,200 574,000 Paid-in capital in excess of par value, 206,800 169,000 common stock Retained earnings 123,100 72,500 Total liabilities and equity $1,062,100 $ 920,600 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit depreciation) Operating expenses (excluding Depreciation expense Income before taxes Income taxes expense Net income $1,822,000 1,092,000 730,000 500,000 54,000 176,000 30,400 $ 145,600 Sales GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $1,822,000 1,092,000 730,000 500,000 54,000 176,000 30,400 $ 145,600 Additional Information on Current Year Transactions a. Purchased equipment for $46,100 cash. b. Issued 12,600 shares of common stock for $5 cash per share. c. Declared and paid $95,000 in cash dividends. Problem 12-6A (Algo) Indirect: Statement of cash flows LO P2, P3 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.) 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: Income statement items not affecting cash Changes in current assets and current liabilities $ 0 Cash flows from investing activities Cash flows from financing activities: 0 0 Net increase (decrease) in cash $ 0 Cash balance at December 31, prior year Cash balance at December 31, current year $ 0