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
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
Accum. depreciation—Equipment (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
Depreciation expense $ 54,000
Other expenses 509,000 563,000
Income before taxes 203,000
Income taxes expense 43,000
Net income $ 160,000
Additional Information on Current Year Transactions:
a. Purchased equipment for $61,400 cash.
b. Issued 13,500 shares of common stock for $5 cash per share.
c. Declared and paid $104,000 in cash dividends.
Required:
1. 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.)
2. Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts as positive values.)