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 $ 177,000 102,500 620,500 900,000 370,000 (164,500) $ 1,105,500 $ 121,300 84,000 539,000 744,300 312,000 (110,500) $945,800 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 $ 113,000 41,000 154,000 $ 84,000 31,600 115,600 607,600 219,400 124,500 $ 1,105,500 501,000 179.500 69,700 $945,800 GOLDEN CORPORATION Income Statement Yor current Year Ended December 31 Sales Cost of goods sold Grous profit Operating expenses (excluding depreciation) Depreciation expenne Income before taxes Income taxes expense Net income $ 1,857,000 1.099,000 1758,000 507,000 50,000 192000 40,200 156,00 Additional Information on Current Year Transactions a. Purchased equipment for $58,000 cash. b. Issued 13,300 shares of common stock for $5 cash per share. c. Declared and paid $102,000 in cash dividends. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 $ 156,800 Cash flows from operating activities Net income 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 Decrease in accounts payable 54,000 210,800 Cash flows from investing activities Cash flows from financing activities: 210,800 Not increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31, current year $ 210,800