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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, 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 $ 107,000 Accounts receivable $164,000 83,000 Inventory 71,000 526,000 601,000 Total current assets 848,000 Equipment 704,000 299,000 Accum. depreciation Equipment 335,000 (158,000) (104,000) Total assets $1,025,000 $ 899,000 Liabilities and Equity Accounts payable $ $ 71,000 Income taxes payable 87,000 28,000 115,000 25,000 Total current liabilities 96,000 Equity Common stock, $2 par value 568,000 592,000 196,000. 160,000 Paid-in capital in excess of par value, common stock Retained earnings 122,000 75,000 Total liabilities and equity $1,025,000 $ 899,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,792,000 Cost of goods sold. 1,086,000 Gross profit 706,000 Operating expenses (excluding depreciation) 494,000 Depreciation expense 54,000 158,000 22,000 Income before taxes i Income taxes expense Net income $ 136,000 Additional Information on Current Year Transactions a. Purchased equipment for $36,000 cash. b. Issued 12,000 shares of common stock for $5 cash per share. c. Declared and paid $89,000 in cash dividends.
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 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