Golden Corp., a merchandiser, recently completed its 2013 operations. 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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets Cash Accounts receivable Merchandise inventory Equipment Accum. depreciation-Equipment(154,500) (107,500) $ 178,000 $ 121,000 90,000 78,000 601,500 540,000 344,100 306,000 Total assets $1,059,100 $ 937,500 Liabilities and Equity Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, $ 94,000 $ 74,500 35,000 28,500 599.000 582,000 211,500 177,500 119,600 75,000 common stock Retained earnings Total liabilities and equity $1,059,100 $ 937,500 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2013 1,773,760 Sales Cost of goods sold Gross profit 1,090,800 682,960 Operating expenses Depreciation $47,000 expense 508,000 555,000 Other expenses Income before taxes Income taxes expense 127,960 15,360 Net income $112,600