Golden Corp.'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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets) Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value GOLDEN CORPORATION Comparative Balance Sheets December 31 Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity Current Year Prior Year $ 171,000 $ 114,700 93,500 78,000 611,500 876,000 353,800 (161,500) $1,068,300 $ 101,000 533,000 725,700 306,000 (107,500) $ 924,200 $ 78,000 35,000 28,600 136,000 106,600 600,400 575,000 208,600 170,500 123,300 72,100 $1,068,300 $ 924,200 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit $1,827,000 1,093,000 734,000 Operating expenses Depreciation expense Other expenses $ 54,000 501,000 555,000 Income before taxes 179,000 Income taxes expense 31,800 Net income $ 147,200 Additional Information on Current Year Transactions a. Purchased equipment for $47,800 cash. b. Issued 12,700 shares of common stock for $5 cash per share. c. Declared and paid $96,000 in cash dividends. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: $ 0 Cash flows from investing activities Cash flows from financing activities: 0 Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 69 $ 0 0 0 697 $ 0