Required information Use the following information for the Problems below. (The following information applies to the questions displayed below. 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 December 31 Current Year Prior Year $ 165,000 84,500 602,500 852,000 337,600 (158,500) $1,031,100 $ 108, 100 72,000 527,000 707,100 300,000 (104,500) $ 902,600 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 72,000 25,600 97,600 $ 89,000 29,000 118,000 593,200 197,800 122, 100 $ 1,031,100 569,000 161,500 74,500 $ 902,600 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $ 1,797,000 Cost of goods sold 1,087,000 Gross profit 710,000 Operating expenses Depreciation expense $ 54,000 Other expenses 495,000 549,000 Income before taxes 161,000 Income taxes expense 23,400 Net income $ 137,600 Additional Information on Current Year Transactions a. Purchased equipment for $37,600 cash. b. Issued 12,100 shares of common stock for $5 cash per share. c. Declared and paid $90,000 in cash dividends. Problem 12-8AB Direct: Statement of cash flows LO P5 Required: Prepare a complete statement of cash flows using the direct method for the current year. (Amounts to be deducted should be indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0