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 Current Year Prior Year $ 180,000 107,000 625,000 912,000 378,100 (166,000) $ 124,600 87,000 542,000 753,600 315,000 (112,000) $ 956,600 $ 87,000 33,100 120,100 $ 1,124,100 $ 119,000 44,000 163,000 611,200 584,000 224,800 184,000 125,100 68,500 $ 956,600 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 $ 1,124,100 GOLDEN CORPORATION Sales 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 $ 1,872,000 1,102,000 770,000 510,000 54,000 206,000 44,400 $ 161,600