Chapter 12, Problem 7PSA

Problem 12-7A^A

Indirect: Cash flows spreadsheet

P1P2 P3P4

Refer to the information reported about Golden Corporation in Problem 12-6A.

Required

Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 12A.1; report operating activities under the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.

a. Net income was $136,000.

b. Accounts receivable increased.

c. Inventory increased.

d. Accounts payable increased.

e. Income taxes payable increased.

f. Depreciation expense was $54,000.

g. Purchased equipment for $36,000 cash.

h. Issued 12,000 shares at $5 cash per share.

i. Declared and paid $89,000 of cash dividends.

Check Analysis of Changes column totals, $481,000