Golden Corp., a merchandiser, recently completed its 2018operations. For the year, (1) all sales are credit sales, (2) allcredits to Accounts Receivable reflect cash receipts fromcustomers, (3) all purchases of inventory are on credit, (4) alldebits to Accounts Payable reflect cash payments for inventory, (5)Other Expenses are all cash expenses, and (6) any change in IncomeTaxes Payable reflects the accrual and cash payment of taxes. Thecompany’s balance sheets and income statement follow.

GOLDEN CORPORATION Comparative Balance Sheets December 31, 2018 and 2017
	2018				2017
Assets
Cash	$	164,000			$	107,000
Accounts receivable		83,000				71,000
Inventory		601,000				526,000
Total current assets		848,000				704,000
Equipment		335,000				299,000
Accum. 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		28,000				25,000
Total current liabilities		115,000				96,000
Equity
Common stock, $2 par value		592,000				568,000
Paid-in capital in excess of par value, common stock		196,000				160,000
Retained earnings		122,000				75,000
Total liabilities and equity	$	1,025,000			$	899,000

  

GOLDEN CORPORATION Income Statement For Year Ended December 31, 2018
Sales				$	1,792,000
Cost of goods sold					1,086,000
Gross profit					706,000
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

Problem 12-6A Indirect: Statement of cash flows LO P1, P2,P3

Additional Information on Year 2018Transactions

1. Purchased equipment for $36,000 cash.
2. Issued 12,000 shares of common stock for $5 cash pershare.
3. Declared and paid $89,000 in cash dividends.

Required:
Prepare a complete statement of cash flows; report its cash inflowsand cash outflows from operating activities according to theindirect method. (Amounts to be deducted should beindicated with a minus sign.)