Use the following information for the Problems below.

[The following information applies to the questions displayed below.]

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	$	173,000			$	116,900
Accounts receivable		96,500				80,000
Inventory		614,500				535,000
Total current assets		884,000				731,900
Equipment		359,200				308,000
Accum. depreciationEquipment		(162,500	)			(108,500	)
Total assets	$	1,080,700			$	931,400
Liabilities and Equity
Accounts payable	$	105,000			$	80,000
Income taxes payable		37,000				29,600
Total current liabilities		142,000				109,600
Equity
Common stock, $2 par value		610,000				577,000
Paid-in capital in excess of par value, common stock		205,000				173,500
Retained earnings		123,700				71,300
Total liabilities and equity	$	1,080,700			$	931,400

GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017
Sales				$	1,837,000
Cost of goods sold					1,095,000
Gross profit					742,000
Operating expenses
Depreciation expense	$	54,000
Other expenses		503,000			557,000
Income before taxes					185,000
Income taxes expense					34,600
Net income				$	150,400

Problem 12-6A Indirect: Statement of cash flows LO P1, P2, P3

Additional Information on Year 2017 Transactions

1. Purchased equipment for $51,200 cash.
2. Issued 12,900 shares of common stock for $5 cash per share.
3. Declared and paid $98,000 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.)

Choose from:

• Accounts payable decrease
• Accounts payable increase
• Accounts receivable decrease
• Accounts receivable increase
• Cash paid for cash dividends
• Cash paid for equipment
• Cash received from stock issuance
• Depreciation expense
• Income taxes payable decrease
• Income taxes payable increase
• Inventory decrease
• Inventory increase
• Notes payable long-term decrease
• Notes payable long-term increase
• Prepaid expense decrease
• Prepaid expense increase
• Salaries payable decrease
• Salaries payable increase
• Net cash provided by financing activities
• Net cash provided by investing activities
• Net cash provided by operating activities
• Net cash used in financing activities
• Net cash used in investing activities
• Net cash used in operating activities

GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation expense Accounts receivable increase Inventory increase Accounts payable increase Income taxes payable increase Cash flows from investing activities: Cash paid for equipment Cash paid for equipment 0 Cash flows from financing activities: Cash paid for cash dividends 0 Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year