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 Current Year Prior Year $ 184,000 113,000 631,000 928,000 388,900 (168,000) $ 1,148,900 $ 129,000 91,000 546,000 766,000 319,000 (114,000) $ 971,000 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 $ 127,000 48,000 175,000 $ 91,000 35,100 126,100 616,000 232,000 125,900 $ 1,148,900 588,000 190,000 66,900 $ 971,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 1,892,000 1,106,000 786,000 514,000 54,000 218,000 50,000 $ 168,000 Additional Information on Current Year Transactions a. Purchased equipment for $69,900 cash. b. Issued 14,000 shares of common stock for $5 cash per share. c. Declared and paid $109,000 in cash dividends. Year Debit Credit Current Year $ $ $ 184,000 Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment 129,000 91,000 546,000 319,000 1,085,000 $ HA $ 184,000 Balance sheet-credit balance accounts Accumulated depreciation Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 114,000 91,000 35,100 588,000 190,000 66,900 1,085,000 $ $ 0 Statement of cash flows Operating activities Investing activities Financing activities 0 $ 0