Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. 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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated 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 Sales GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income Additional Information on Current Year Transactions a. Purchased equipment for $47,800 cash. $ 1,827,000 1,093,000 734,000 501,000 54,000 179,000 31,800 $147,200 b. Issued 12,700 shares of common stock for $5 cash per share, c. Declared and paid $96,000 in cash dividends Current Year Prior Year $171,000 93,500 $ 114,700 78,000 611,500 533,000 725,700 876,000 353,800 (161,500) $ 1,068,300 $ 101,000 35,000 136,000 600,400 208,600 123,300 $ 1,068,300 306,000 (107,500) $ 924,200 $ 78,000 28,600 106,600 575,000 170,500 72,100 $ 924,200 Statement of Cash Flows Cash flows from operating activities Net income For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0 0 $ 0 $ 0 0