Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, 2016, the company purchased equipment that cost $120,000 cash, had an expected useful life of six years, and had an estimated salvage value of $4,000. Golden Manufacturing earned $72,000 and $83,000 of cash revenue during 2016 and 2017, respectively. Golden Manufacturing uses double-declining-balance depreciation.

Question: Prepare income statements, balance sheets, and statements of cash flows for 2016 and 2017. Use a vertical statements format. (Hint: Record the events in T-accounts prior to preparing the statements.)