Golden Manufacturing Company started operations by acquiring $$138,000$ cash from the issue of common stock. On January $1,$ Year $1,$ the company purchased equipment that cost $$128,000$ cash, had an expected useful life of five years, and had an estimated salvage value of $$12,800.$ Golden Manufacturing earned $$87,420$ and $$67,800$ of cash revenue during Year $1$ and Year $2,$ respectively. Golden Manufacturing uses double$-$declining$-$balance depreciation.

Required

Record the above transactions in a horizontal statements model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

Prepare income statements, balance sheets, and statements of cash flows for Year $1$ and Year $2.$ Use a vertical statements format.