Golden Corp: Statement of Cash Flows (Indirect Method)

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Problem 12-4A: Statement of cash flows (indirect method) L.O. C3, P1, P2, P3
Golden Corp., a merchandiser, recently completed its 2008 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.
Golden's balance sheets and income statement follow:
GOLDEN CORPORATION
Income Statement
For Year Ended December 31, 2008

Sales $1,797,000
Cost of goods sold 1,090,000
Gross profit $707,000
Operating expenses
Depreciation expense $51,000
Other expenses 496,000 $547,000
Income before taxes $160,000
Income taxes expense 21,000
Net income $139,000

GOLDEN CORPORATION
Comparative Balance Sheets
31-Dec-08
2008 2007
Assets
Cash $160,000 $135,000
Accounts receivable 83,000 71,000 12,000
Merchandise inventory 630,000 515,000 115,000
Equipment 345,000 254,000
Accum. depreciation-Equipment -156,000 -105,000
Total assets $1,062,000 $870,000

Liabilities and Equity
Accounts payable $156,000 $81,000 75,000
Income taxes payable 28,000 25,000 3,000
Common stock, $2 par value 590,000 566,000
Paid-in capital in excess of par value, common stock 196,000 160,000 -49,000
Retained earnings 92,000 38,000
Total liabilities and equity $1,062,000 $870,000

"Additional Information on Year 2008 Transactions
a. Purchased equipment for $91,000 cash.
b. Issued 12,000 shares of common stock for $5 cash per share.
c. Declared and paid $85,000 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. (Negative amount should be indicated by a minus sign. Omit the ""$""
sign in your response.)