Prepare statement of cash flows using the indirect method:

Problem 16-6A Indirect: Statement of cash flows P2 @ P3 Golden Corp.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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash $107,000 Accounts receivable $ 164,000 83,000 601,000 71,000 Inventory 526,000 Total current assets 848,000 704,000 335,000 299,000 Equipment Accum. depreciation Equipment (158,000) (104,000) $899,000 Total assets $1,025,000 Liabilities and Equity Accounts payable Income taxes payable $ 87,000 $ 71,000 28,000 25,000 Total current liabilities 115,000 96,000 592,000 568,000 Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 196,000 160,000 122,000 75,000 $1,025,000 $899,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,792,000 1,086,000 706,000 Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 Other expenses | 494,000 548,000 Income before taxes 158,000 Income taxes expense 22,000 Net income $ 136,000 Additional Information on Current-Year 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