TOPIC: CASH FLOWS Golden Corp., a merchandiser, recently completed its 2013 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 company's balance sheets and income statement follow. GOLDEN CORPORATION Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 $ 164,000 83.000 601.000 335.000 (158.000) $1,025,000 $107.000 71.000 526,000 299,000 (104.000) $899,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2013 Assets Cash .. Accounts receivable....... Merchandise Inventory ........... Equipment Accum. deprecation-Equipment Total assets... Liabilities and Equity Accounts payable ............... Income taxes payable .......... Common stock. $2 par value........ Pald-in capital in excess of par value, common stock...... Retained eamings.. Total abilities and equity ..... $1.792.000 1.086,000 706,000 87.000 28.000 592.000 $ 71,000 25,000 568,000 Sales .... Cost of goods sold ..... Gross profit Operating expenses Depreciation expense ......... Other expenses.......... Income before taxes ....... Income taxes expense Net Income .............. $ 54,000 494,000 196.000 122.000 $1.025.000 160,000 75,000 $899,000 548.000 158,000 22.000 $ 136,000 Additional Information on Year 2013 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 Cash Flows Statement using: 1. Indirect Method (10 points) 2. Direct Method (10 points)