Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. 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 CORPORATION
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $166,000 $109,200
Accounts receivable 86,000 73,000
Inventory 604,000 528,000
Total current assets 856,000 710,200
Equipment 340,300 301,000
Accum. depreciationâEquipment (159,000) (105,000)
Total assets $1,037,300 $906,200
Liabilities and Equity
Accounts payable $91,000 $73,000
Income taxes payable 30,000 26,100
Total current liabilities 121,000 99,100
Equity
Common stock, $2 par value 594,400 570,000
Paid-in capital in excess of par value, common stock 199,600 163,000
Retained earnings 122,300 74,100
Total liabilities and equity $1,037,300 $906,200
GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales $1,802,000
Cost of goods sold 1,088,000
Gross profit 714,000
Operating expenses
Depreciation expense$54,000
Other expenses 496,000 550,000
Income before taxes 164,000
Income taxes expense 24,800
Net income $139,200
Additional Information on Current Year Transactions
Purchased equipment for $39,300 cash.
Issued 12,200 shares of common stock for $5 cash per share.
Declared and paid $91,000 in cash dividends.
Required:
Prepare a complete statement of cash flows using the direct method for the current year. (Amounts to be deducted should be indicated with a minus sign.)
Please ensure your answer is using the direct method! I am struggling the most with finding "Cash paid for inventory" and "cash paid for other expenses" so details on how you found those figures would be greatly appreciated! Thanks.