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 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 $ 1,857,000 1,099,000 758,000 507,000 54,000 197,000 40,200 $ 156,800 Current Year Prior Year $ 177,000 102,500 $ 121,300 84,000 620,500 539,000 900,000 744,300 370,000 (164,500) 312,000 (110,500) $ 1,105,500 $ 113,000 41,000 $ 945,800 $ 84,000 31,600 154,000 115,600 607,600 581,000 219,400 179,500 124,500 69,700 $ 1,105,500 $ 945,800