Required information

Use the following information for the Problems below. (Algo)

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	$ 179,000	$ 123,500
Accounts receivable	105,500	86,000
Inventory	623,500	541,000
Total current assets	908,000	750,500
Equipment	375,400	314,000
Accumulated depreciationEquipment	(165,500)	(111,500)
Total assets	$ 1,117,900	$ 953,000
Liabilities and Equity
Accounts payable	$ 117,000	$ 86,000
Income taxes payable	43,000	32,600
Total current liabilities	160,000	118,600
Equity
Common stock, $2 par value	610,000	583,000
Paid-in capital in excess of par value, common stock	223,000	182,500
Retained earnings	124,900	68,900
Total liabilities and equity	$ 1,117,900	$ 953,000

GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales	$ 1,867,000
Cost of goods sold	1,101,000
Gross profit	766,000
Operating expenses (excluding depreciation)	509,000
Depreciation expense	54,000
Income before taxes	203,000
Income taxes expense	43,000
Net income	$ 160,000

Additional Information on Current Year Transactions

1. Purchased equipment for $61,400 cash.
2. Issued 13,500 shares of common stock for $5 cash per share.
3. Declared and paid $104,000 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. (Amounts to be deducted should be indicated with a minus sign.)

Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)