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Problem 16-4A Indirect: Statement of cash flows - GOLDEN CORPORATION

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Problem 16-4A Indirect: Statement of cash flows LO P1, P2, P3;Golden Corp., a merchandiser, recently completed its 2013 operations. 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. The company?s balance sheets and income statement follow.;GOLDEN CORPORATION;Comparative Balance Sheets;December 31, 2013 and 2012;2013 2012;Assets;Cash $ 194,000 $ 135,000;Accounts receivable 92,000 71,000;Merchandise inventory 615,000 533,000;Equipment 349,000 313,000;Accum. depreciation?Equipment (167,000 ) (111,000 );Total assets $ 1,083,000 $ 941,000;Liabilities and Equity;Accounts payable $ 92,000 $ 78,000;Income taxes payable 42,000 32,000;Common stock, $2 par value 604,000 582,000;Paid-in capital in excess of par value, common stock 200,000 167,000;Retained earnings 145,000 82,000;Total liabilities and equity $ 1,083,000 $ 941,000;GOLDEN CORPORATION;Income Statement;For Year Ended December 31, 2013;Sales $ 1,827,000;Cost of goods sold 1,093,000;Gross profit 734,000;Operating expenses;Depreciation expense $ 56,000;Other expenses 501,000 557,000;Income before taxes 177,000;Income taxes expense 23,000;Net income $ 154,000;Additional Information on Year 2013 Transactions;a.;Purchased equipment for $36,000 cash.;b.;Issued 11,000 shares of common stock for $5 cash per share.;c.;Declared and paid $91,000 in cash dividends.;Required;Prepare a complete statement of cash flows, report its cash inflows and cash outflows from operating activities according to the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

 

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