53 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. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment 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 311 Sales Cost of goods sold $ 1,837,000 1,095,000 742,000 503,000 54,000 185,000 34,600 $ 150,400 Gross profit Operating expenses (excluding depreciation). Depreciation expense Income before taxes Income taxes expense Net income Additional Information on Current Year Transactions a. Purchased equipment for $51,200 cash. b. Issued 12,900 shares of common stock for $5 cash per share. c. Declared and paid $98,000 in cash dividends. Current Year Prior Year: $ 173,000 $ 116,900 96,500 80,000 614,500 535,000 884,000 359,200 (162,500) $1,080,700 $ 105,000 37,000 731,900 308,000 (108,500) $ 931,400 $ 80,000 29,600 142,000 109,600 602,800 577,000 212,200 173,500 123,700 71,300 $ 1,080,700 $931,400