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 Current Year Prior Year $ 172,000 95,000 613,000 880,000 356,500 (162,000) $1,074,500 $ 115,800 79,000 534,000 728,800 307,000 (108,000) $ 927,800 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 $ $ 103,000 36,000 139,000 79,000 29,100 108, 100 601,600 210,400 123,500 $1,074,500 576,000 172,000 71,700 $ 927,800 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,832,000 Cost of goods sold 1,094,000 Gross profit 738,000 Operating expenses Depreciation expense $ 54,000 Other expenses 502,000 556,000 Income before taxes 182,000 Income taxes expense 33,200 Net income $ 148,800 Additional Information on Current Year Transactions Additional Information on Current Year Transactions a. Purchased equipment for $49,500 cash. b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and paid $97,000 in cash dividends. Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0