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GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,847,000 Cost of goods sold 1,097,000 Gross profit 750,000 Operating expenses Depreciation expense $ 54,000 Other expenses 505,000 559,000 Income before taxes 191,000 Income taxes expense 37,400 Net income $ 153,600 Additional Information on Current Year Transactions a. Purchased equipment for $54,600 cash. b. Issued 13,100 shares of common stock for $5 cash per share. c. Declared and paid $100,000 in cash dividends. 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.) GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: 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 GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Debit Credit Year December 31, Current Year $ 119,100 175,000 Balance sheetdebit balance accounts Cash Accounts receivable Inventory Equipment 82,000 537,000 310,000 1,048, 100 $ $ 175,000 Balance sheet-credit balance accounts Accumulated depreciation Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 109,500 82,000 30,600 579,000 176,500 70,500 1,048,100 $ Statement of cash flows Operating activities Investing activities Financing activities 0 $

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