[The following information applies to the questions displayed below.] Golden Corporation'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 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ 175,000 99,500 617,500 892,000 364,600 (163,500) $ 1,093,100 $ 109,000 39,000 $ 119,100 82,000 537,000 738,100 310,000 (109,500) $ 938,600 $ 82,000 30,600 Income taxes payable Total current liabilities Equity 148,000 112,600 605,200 579,000 215,800 176,500 124,100 70,500 Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 1,093,100 GOLDEN CORPORATION Sales Cost of goods sold Gross profit Income Statement For Current Year Ended December 31 $ 1,847,000 1,097,000 750,000 505,000 54,000 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income Additional Information on Current Year Transactions a. Purchased equipment for $54,600 cash. 191,000 37,400 $ 153,600 b. Issued 13,100 shares of common stock for $5 cash per share. c. Declared and paid $100,000 in cash dividends. $ 938,600 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.) Answer is complete but not entirely correct. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash received from customers Cash paid for inventory Cash paid for operating expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from issuing stock Cash paid for dividends Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 1,902,900 (1,150,500) (505,000) (37,400) X $ 210,000 (54,600) (54,600) 65,500 (100,000) (34,500) $ 120,900 119,100 $ 240,000