Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1, 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 Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining balance depreciation Required a. Record the above transactions in a horizontal statements model b-1. Prepare income statements for Year 1 and Year 2 as b-2. Prepare balance sheets for Year 1 and Year 2. b-3. Prepare statements of cash flows for Year 1 and Year 2 Event Assets BV Equipment Statement of cash Flows Equity Common Retained Stock Earnings Revenue Expense Cash = Net Income + + Year 1 Issue stock Purchase equipment Revenue Depreciation expense Balance Year 2 Beg bal Revenue Depreciation expense End, bal GOLDEN MANUFACTURING COMPANY Income Statements For the Year Ended December 31 Year 1 Year 2 GOLDEN MANUFACTURING COMPANY Balance Sheets As of December 31 Year 1 Year 2 Assets s Total Assets Stockholders' equity Total stockholders' equity GOLDEN MANUFACTURING COMPANY Statements of Cash Flows For the Year Ended December 31 + Year 1 Year 2 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Ending cash balance