Question

Golden Corp., a merchandiser, recently completed its 2015 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, 2015 and 2014
	2015			2014
Assets
Cash	$	164,000		$	107,000
Accounts receivable		83,000			71,000
Inventory		601,000			526,000
Total current assets		848,000			704,000
Equipment		335,000			299,000
Accum. depreciation—Equipment		(158,000	)		(104,000	)
Total assets	$	1,025,000		$	899,000
Liabilities and Equity
Accounts payable	$	87,000		$	71,000
Income taxes payable		28,000			25,000
Total current liabilities		115,000			96,000
Equity
Common stock, $2 par value		592,000			568,000
Paid-in capital in excess of par value, common stock		196,000			160,000
Retained earnings		122,000			75,000
Total liabilities and equity	$	1,025,000		$	899,000

GOLDEN CORPORATION Income Statement For Year Ended December 31, 2015
Sales				$	1,792,000
Cost of goods sold					1,086,000
Gross profit					706,000
Operating expenses
Depreciation expense	$	54,000
Other expenses		494,000			548,000
Income before taxes					158,000
Income taxes expense					22,000
Net income				$	136,000

Additional Information on Year 2015 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; report its cash flows from operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.)