and Pro Exercise 8-8A Effect of Sle-declining-balance depreciation on financial statements LO 8-3 Golden Manufacturing Company started operations by acquiring $106.900 cash from the issue of common stock On January 1 Year 1 the company purchased equipment that cost S106,900 cash, had an expected useful lide of six years, and had an estimated salvage value of $21380 Golden Manufacturing eamed 591 900 and 569.650 of cash revenue during Year 1 and Year 2. respectively, Golden Manufacturing uses double declining-balance depreciation Required: Prepare income statements, balance sheets, and statements of cash flows for Year and Year 2 Use a vertical statements format. (Hint Record the events in T-accounts prior to preparing the statements. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Amounts to be deducted and net loss should be indicated with a minus sign) GOLDEN MANUFACTURING COMPANY Financial Statements Yeart Income statements Sales revenue $ 91,900 $ 69.660 Depreciation expense Net Income $ 91.900 $69.650 Balance sheets Assets Equipment $ 106,900 $ 106.900 Cash 91 900 Accumulated depreciation 0 0 Total assets $ 198 800 $ 106.900 Stockholders equity Common stock $ 106,900 $ 106,900 Retained eemings 0 0 Total stockholders equity $ 106,900 5 106,900 Statements of cash flows Cash flows from operating acties Inflow from customers answers to e nearest wure gonar. Anours to be geuuctea ona net 1055 De in Income statements 91,900 5 69,650 $ 91,900 $ 69,650 Sales revenue Depreciation expense Net income Balance sheets Assets Equipment Cash Accumulated depreciation $ 106,900 $ 106,900 91,900 0 0 $ 198,800 $ 106,900 Total assets Stockholders' equity Common stock Retained earnings $ 106 900 S 106.900 0 0 $ 106,900 S 106.900 Total stockholders equity Statements of cash flows Cash flows from operating activities Inflow from customers Cash flows from investing activities Outfiow to purchase equipment Cash flows from financing activities: Inflow from stock issue Net change in cash Plus: Beginning cash balance Ending cash balance 0 0 $ 0 0