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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	$ 170,000	$ 113,600
Accounts receivable	92,000	77,000
Inventory	610,000	532,000
Total current assets	872,000	722,600
Equipment	351,100	305,000
Accumulated depreciationEquipment	(161,000)	(107,000)
Total assets	$ 1,062,100	$ 920,600
Liabilities and Equity
Accounts payable	$ 99,000	$ 77,000
Income taxes payable	34,000	28,100
Total current liabilities	133,000	105,100
Equity
Common stock, $2 par value	599,200	574,000
Paid-in capital in excess of par value, common stock	206,800	169,000
Retained earnings	123,100	72,500
Total liabilities and equity	$ 1,062,100	$ 920,600

GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales	$ 1,822,000
Cost of goods sold	1,092,000
Gross profit	730,000
Operating expenses (excluding depreciation)	500,000
Depreciation expense	54,000
Income before taxes	176,000
Income taxes expense	30,400
Net income	$ 145,600

Additional Information on Current Year Transactions

Purchased equipment for $46,100 cash.

Issued 12,600 shares of common stock for $5 cash per share.

Declared and paid $95,000 in cash dividends.

Problem 12-6A (Algo) Indirect: Statement of cash flows LO P2, P3

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.

For Current Year Ended December 31
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
Changes in current assets and current liabilities
Cash flows from investing activities
Cash flows from financing activities:
Net increase (decrease) in cash
Cash balance at December 31, prior year
Cash balance at December 31, current year