Question

Golden Corp., a merchandiser, recently completed its 2015operations. 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. GOLDENCORPORATION Comparative Balance Sheets December 31, 2015 and 20142015 2014 Assets Cash $ 203,000 $ 144,000 Accounts receivable98,000 74,000 Inventory 621,000 536,000 Total current assets922,000 754,000 Equipment 358,000 319,000 Accum.depreciation—Equipment (173,000 ) (114,000 ) Total assets $1,107,000 $ 959,000 Liabilities and Equity Accounts payable $87,000 $ 81,000 Income taxes payable 42,000 35,000 Total currentliabilities 129,000 116,000 Equity Common stock, $2 par value616,000 588,000 Paid-in capital in excess of par value, commonstock 212,000 170,000 Retained earnings 150,000 85,000 Totalliabilities and equity $ 1,107,000 $ 959,000 GOLDEN CORPORATIONIncome Statement For Year Ended December 31, 2015 Sales $ 1,842,000Cost of goods sold 1,096,000 Gross profit 746,000 Operatingexpenses Depreciation expense $ 59,000 Other expenses 504,000563,000 Income before taxes 183,000 Income taxes expense 24,000 Netincome $ 159,000 Additional Information on Year 2015 Transactionsa. Purchased equipment for $39,000 cash. b. Issued 14,000 shares ofcommon stock for $5 cash per share. c. Declared and paid $94,000 incash dividends. Required: Prepare a complete statement of cashflows; report its cash inflows and cash outflows from operatingactivities according to the indirect method.