25 Required information [The following information applies to the questions displayed below.) Golden Corporation'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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. ces Assets Cash Accounts receivable Inventory Total current assets Equipment GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 168,000 89,000 607,000 864,000 345,700 (160,000) $ 1,049,700 530,000 716,400 303,000 (106,000) $ 913,400 $111,400 75,000 Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net incone $ 1,812,000 1,090,000 722,000 498,000 54,000 170,000 27,600 $142,400 $ 95,000 32,000 $ 75,000 27,100 127,000 102,100 596,800 572,000 203,200 166,000 122,700 73,300 $ 1,049,700 $ 913,400 Additional Information on Current Year Transactions a. Purchased equipment for $42,700 cash. b. Issued 12,400 shares of common stock for $5 cash per share. c. Declared and paid $93,000 in cash dividends. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash flows from investing activities $ Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0 $ 0 $ 0