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 $ 164,000 83,000 601,000 848,000 335,000 (158,000) $1,025,000 $ 107,000 71,000 526,000 704,000 299,000 (104,000) $ 899,000 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 $ 87,000 28,000 115,000 $ 71,000 25,000 96,000 592,000 196,000 122,000 $1,025,000 568,000 160,000 75,000 $ 899,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,792,000 Cost of goods sold 1,086,000 Gross profit 706,000 Operating expenses Depreciation expense $ 54,000 Other expenses 494,000 548,000 Income before taxes 158,000 Income taxes expense 22,000 Net income $ 136,000 Additional Information on Current Year Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 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.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income $ Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 54,000 Inventory increase (75,000) 136,000 16,000 Accounts payable increase Income taxes payable increase Accounts receivable increase 3,000 (12,000) $ 122,000 Cash flows from investing activities Cash paid for equipment (36,000) (36,000) Cash flows from financing activities: Cash received from stock issuance Cash paid for cash dividends 60,000 (89,000) Cash paid for cash dividends (89,000) $ Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (29,000) 57,000 107,000 164,000 $ GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Debit Credit Year December 31, Current Year $ 122,000 $ 164,000 Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment 107,000 $ 71,000 526,000 299,000 1,003,000 $ 164,000 $ Balance sheet-credit balance accounts Accumulated depreciation Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 104,000 71,000 25,000 568,000 160,000 75,000 1,003,000 $ 0 Statement of cash flows Operating activities Investing activities Financing activities $ 122,000 $ Required: Prepare a complete statement of cash flows using the direct 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 $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 $ Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0