Golden Corporation’s current year income statement, comparative balance sheets, and additional information follow. For the year,

1. (1) all sales are credit sales,
2. (2) all credits to Accounts Receivable reflect cash receipts from customers,
3. (3) all purchases of inventory are on credit,
4. (4) all debits to Accounts Payable reflect cash payments for inventory, and
5. (5) 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
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
Accumulated depreciation—Equipment	(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	607,600	581,000
Paid-in capital in excess of par value, common stock	219,400	179,500
Retained earnings	124,500	69,700
Total liabilities and equity	$ 1,105,500	$ 945,800

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

Additional Information on Current Year Transactions

1. Purchased equipment for $58,000 cash.
2. Issued 13,300 shares of common stock for $5 cash per share.
3. Declared and paid $102,000 in cash dividends.

Required:

Prepare a complete statement of cash flows using the indirect method for the current year.

Note: Enter amounts to be deducted as negative values.

Solution

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