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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 companys balance sheets and income statement follow.

GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016

Assets

Cash$177,000 $121,300 Accounts receivable 102,500 84,000 Inventory 620,500 539,000 Total current assets 900,000 744,300 Equipment 370,000 312,000 Accum. depreciationEquipment (164,500) (110,500)Total assets$1,105,500 $945,800 Liabilities and Equity Accounts payable$113,000 $84,000 Income taxes payable 41,000 31,600 Total current liabilities 154,000 115,600 Equity Common stock, $2 par value 618,000 581,000 Paid-in capital in excess of par value, common stock 209,000 179,500 Retained earnings 124,500 69,700 Total liabilities and equity$1,105,500 $945,800

GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017
Sales				$	1,857,000
Cost of goods sold					1,099,000
Gross profit					758,000
Operating expenses
Depreciation expense	$	54,000
Other expenses		507,000			561,000
Income before taxes					197,000
Income taxes expense					40,200
Net income				$	156,800

Additional Information on Year 2017 Transactions

Purchased equipment for $58,000 cash.

Issued 13,300 shares of common stock for $5 cash per share.

Declared and paid $102,000 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.)

Check my work 8 Comparative Balance Sheeta Deceaber 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets 177,000 121,300 84,000 620,500 539,000 744,300 370,000 312,000 164,500)(110 300 $1,105,500 945,800 102,500 5 points 900,000 eBook Print References 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 $ 113,000 84,000 41,00031,600 115,600 154,000 618,000 581,000 209,000 179,500 124,500 69,700 $1,105,500 945,800 Total liabilities and equity GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,857,000 1,099,000 758,000 Depreciation expense 54,000 Other expenses Income before taxes Income taxes expense Net income 507,000561,000 197,000 40,200 $ 156,800