Exercise 8-8A (Static) Effect of double-declining-balance depreciation on financial statements LO 8-3\ Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation.\ \ Required:\ a. Record the transactions in a horizontal statements model.\ \ b-1. Prepare income statements for Year 1 and Year 2.\ \ b-2. Prepare balance sheets for Year 1 and Year 2.\ \ b-3. Prepare statements of cash flows for Year 1 and Year 2.