Golden Corp., a merchandiser, recently completed its 2018 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, 2018 and 2017 2018 2017 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 $ 174,000 118,000 81,000 98,000 616,000 5361000_ 888,0003 735,000 309,000 109,000 935, 000 361,900 163,000 $1,086,900 $ 107,000 38,000 145,000 81,000 30,100 111,100 586,000 167,000 70,900 $1,086,900 $935,000 612,000 206,000 123,900 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2018 $1,842,000 1,096,000 746,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,000 504,000558,000 36,000 $ 152,000 Other expenses Income before taxes Income taxes expense Net income Additional Information on Year 2018 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. GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2018 Cash flows from operating activities 152,000 Net income Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash 54,000 Depreciation expense Changes in current assets and current liabilities Inventory increase Accounts payable increase Income taxes payable increase Accounts receivable increase (80,000) 26,000 7,900 (17,000) $ 142,900 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment (52,900) Net cash used in investing activities (52,900) Cash flows from financing activities (99,000) 26,000 39,000 Cash paid for cash dividends Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, 2017 Cash balance at December 31, 2018 (34,000) 56,000 118,000 $ 174,000