Required information

Use the following information for the Problems below. $($Static$)$

Skip to question

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

Golden Corporation'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, and $(5)$ 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 $ $164,000$ $ $107,000$

Accounts receivable $83,00071,000$

Inventory $601,000526,000$

Total current assets $848,000704,000$

Equipment $335,000299,000$

Accumulated depreciation$$Equipment $(158,000)(104,000)$

Total assets $ $1,025,000$ $ $899,000$

Liabilities and Equity

Accounts payable $ $87,000$ $ $71,000$

Income taxes payable $28,00025,000$

Total current liabilities $115,00096,000$

Equity

Common stock, $$2$ par value $592,000568,000$

Paid$-$in capital in excess of par value, common stock $196,000160,000$

Retained earnings $122,00075,000$

Total liabilities and equity $ $1,025,000$ $ $899,000$

GOLDEN CORPORATION

Income Statement

For Current Year Ended December $31$

Sales $ $1,792,000$

Cost of goods sold $1,086,000$

Gross profit $706,000$

Operating expenses $($excluding depreciation$)494,000$

Depreciation expense $54,000$

Income before taxes $158,000$

Income taxes expense $22,000$

Net income $ $136,000$

Additional Information on Current Year Transactions

Purchased equipment for $$36,000$ cash.

Issued $12,000$ shares of common stock for $$5$ cash per share.

Declared and paid $$89,000$ in cash dividends.

Problem $12-6$A $($Static$)$ Indirect: Statement of cash flows LO P$2,$ P$3$

Required:

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

Note: Amounts to be deducted should be indicated with a minus sign.