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) $ 1,832,000 1,094,000 738,000 502,000 Current Year Prior Year $ 115,800 $ 1,074,500 $ 103,000 36,000 $ 172,000 95,000 613,000 880,000 356,500 (162,000) 79,000 534,000 728,800 307,000 (108,000) $ 927,800 $ 79,000 29,100 139,000 108,100 601,600 576,000) 210,400 172,000 123,500 71,700 $ 1,074,500 $927,800