Exercise 8-8A Effect of double-declining balance depreciation on financial statements LO 8-3 ats Golden Manufacturing Company started operations by acquiring $124.200 cash from the issue of common stock. On January 1, Year 1. the company purchased equipment that cost $124.200 cash, had an expected useful life of six years, and had an estimated salvage value of $24,840. Golden Manufacturing earned $99.570 and $60,450 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 1 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 Year 1 Year 2 Income statements $ 99,570 60,450 Sales revenue Depreciation expense Net income Balance sheets $ 99,570 $ 60,450 Assets Cash O Equipment Accumulated depreciation $ 0 $ 0 Total assets Stockholders' equity $ 0 $ 0 Total stockholders' equity Statements of cash flows Cash flows from operating activities: Cash flows from investing activities: Accumulated depreciation $ 0 $ 0 Total assets Stockholders' equity $ 0 $ 0 Total stockholders' equity Statements of cash flows Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Net change in cash 0 0 Ending cash balance $ 0 $ 0