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. GOLDEN CORPORATION Comparative Balance Sheets December 31 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 Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $1,852,000 1,098,000 754,000 $ 54,000 506,000 560,000 194,000 38,800 $ 155,200 Current Year Prior Year $ 176,000 101,000 $ 120,200 83,000 619,000 538,000 896,000 741,200 367,300 (164,000) $1,099,300 $ 111,000 40,000 151,000 606,400 217,600 311,000 (110,000) $942,200 $ 83,000 31,100 114,100 580,000 178,000 124,300 70,100 $1,099,300 $ 942,200