Required information Use the following information for the Problems below. [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 $ 166,000 86,000 604,000 856,000 340,300 (159,000) $1,037,300 $ 109,200 73,000 528,000 710,200 301,000 (105,000) $ 906, 200 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 $ 91,000 30,000 121,000 $ 73,000 26,100 99, 100 594,400 199,600 122,300 $1,037,300 570,000 163,000 74,100 $ 906,200 $ $ 91,000 30,000 121,000 73,000 26,100 99,100 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 594,400 199,600 122,300 $1,037,300 570,000 163,000 74,100 $ 906,200 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,802,000 Cost of goods sold 1,088,000 Gross profit 714,000 Operating expenses Depreciation expense $ 54,000 Other expenses 496,000 550,000 Income before taxes 164,000 Income taxes expense 24,800 Net income $ 139,200 Additional Information on Current Year Transactions a. Purchased equipment for $39,300 cash. b. Issued 12,200 shares of common stock for $5 cash per share. c. Declared and paid $91,000 in cash dividends. requieu. 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 Net income $ 139,200 Adjustments to reconcile net income to net cash provided by operations: Accounts receivable increase 13,000 Inventory increase 76,000 18,000 Accounts payable increase Income taxes payable increase 3,900 Depreciation expense 54,000 $ 304,100 Net cash provided by operating activities Cash flows from investing activities Cash received from stock issuance Cash paid for cash dividends Net cash provided by investing activities Cash flows from financing activities: 0 $ 304,100 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 304,100