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 companys balance sheets and income statement follow.

GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 $ 174,000 98,000 616,000 888,000 361,900 (163,000) $1,086,900 $ 118,000 81,000 536,000 735,000 309,000 (109,000) $ 935,000 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 $ $ 107,000 38,000 145,000 81,000 30, 100 111,100 612,000 206,000 123,900 $1,086,900 578,000 175,000 70,900 $ 935,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales $1,842,000 Cost of goods sold 1,096,000 Gross profit 746,000 Operating expenses Depreciation expense $ 54,000 Other expenses 504,000 558,000 Income before taxes 188,000 Income taxes expense 36,000 Net income $ 152,000 Additional Information on Year 2017 Transactions a. Purchased equipment for $52,900 cash. b. Issued 13,000 shares of common stock for $5 cash per share. c. Declared and paid $99,000 in cash dividends. Cash flows from operating activities Net income $ 152,000 Adjustments to reconcile net income to net cash provided by operations: Accounts receivable increase Inventory increase Accounts payable increase Income taxes payable increase Depreciation expense $ 152,000 Net cash provided by operating activities Cash flows from investing activities: Cash paid for equipment 0 Net cash used in investing activities Cash flows from financing activities: Cash received from stock issuance Cash paid for cash dividends 0 $ 152,000 Net cash used in financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year $ 152,000