Question

[The following information applies to the questions displayedbelow.] Golden Corp., a merchandiser, recently completed its 2017operations. 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, 2017 and 20162017 2016 Assets Cash $ 176,000 $ 120,200 Accounts receivable101,000 83,000 Inventory 619,000 538,000 Total current assets896,000 741,200 Equipment 367,300 311,000 Accum.depreciation—Equipment (164,000 ) (110,000 ) Total assets $1,099,300 $ 942,200 Liabilities and Equity Accounts payable $111,000 $ 83,000 Income taxes payable 40,000 31,100 Total currentliabilities 151,000 114,100 Equity Common stock, $2 par value616,000 580,000 Paid-in capital in excess of par value, commonstock 208,000 178,000 Retained earnings 124,300 70,100 Totalliabilities and equity $ 1,099,300 $ 942,200 GOLDEN CORPORATIONIncome Statement For Year Ended December 31, 2017 Sales $ 1,852,000Cost of goods sold 1,098,000 Gross profit 754,000 Operatingexpenses Depreciation expense $ 54,000 Other expenses 506,000560,000 Income before taxes 194,000 Income taxes expense 38,800 Netincome $ 155,200 Additional Information on Year 2017Transactions

1) Purchased equipment for $56,300 cash.

2) Issued 13,200 shares of common stock for $5 cash pershare.

3) Declared and paid $101,000 in cash dividends.

Required: Prepare a complete statement of cash flows; report itscash inflows and cash outflows from operating activities accordingto the indirect method. (Amounts to be deducted should be indicatedwith a minus sign.)