Exercise 8-8A Effect of double-declining-balance depreciation on financial statements LO 8.3 Golden Manufacturing Company started operations by acquiring $145,400 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $145,400 cash, had an expected useful life of six years, and had an estimated salvage value of $29,080. Golden Manufacturing earned $86,910 and $67,550 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 Sales revenue $ 86,910 $ 67,550 Depreciation expense 48,466 Net income $ 38,444 $ 67,550 Balance sheets Assets $ 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