Golden Corp., a merchandiser, recently completed its 2017 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, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 166,e00 109,200 73,000 528,000 710,200 301,000 159,000) (105,000) $1,037,300 $ 906,208 86,000 604,000 856,000 340, 30,000 121,000 $91,e00 73,008 26,100 99,100 570,000 163,000 74,100 $1,037,300 $ 906,208 596,000 198,000 122, 300 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,802,000 1,088,000 714,000 Depreciation expense $54,00e 496,000 Other expenses Income before taxes Income taxes expense Net income 550,000 164,000 24,800 $139,200 Additional Information on Year 2017 Transactions a. Purchased equipment for $39,300 cash. b. Issued 12,200 shares of common stock for $5 cash per share c. Declared and paid $91,000 in cash dividends GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities: Cash flows from financing activities: Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year