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 purchase in a horizontal statements model. b-1. Prepare income statements for Year 1 and Year 2. b-2. Prepare balance sheets for Year 1 and Year 2 b-3. Prepare statements of cash flows for Year 1 and Year 2 Complete this question by entering your answers in the tabs below. Req B2 Bal Sheet Req 83 Stmt Cash Req B1 Inc Stmt Req A Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investin cash (NC). Enter any decreases to account balances and cash outflows with a minus sign. Do not round intermediate calculations. Round the final ans Flow" column may require an input - leave cells blank if there is no corresponding input needed.) b-2 Prepare balance sheets tor Year 1 and Year 2 b-3. Prepare statements of cash flows for Year 1 and Year 2 Complete this question by entering your answers in the tabs below. Req 82 Bal Sheet Req B1 Inc Stmt Req 83 Stmt Cash Req A Record the purchase in a horizontal statements model. (In the Cash Flow cokumn, indicate whether the item is an operating activity (OA), an investing activity (IA), a cash (NC). Enter any decreases to account balances and cash outflovs with a minus sign. Do not round intermediate calculations. Round the final answers to nearest c Flow" column may require an input - leave cells blank if there is no corresponding input needed.) GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Income Statement Equity Statement of Cash Flows Assets Expense Revenue Net Income Event Retained Eamings Accumulated Common Stock Cash Equipment Depreciation Year 1 o 150,000+ 0- O 150,000 o120.000) 150.000+ Issue stock FA (120,000) 72.000 ol Purchase equipment Revenue Depreciation expense Balance 120.000 Ol + 0 72,000 72,000 ol 0 72,000 72.000 0+ 102.000 150,000 72,000 72.000- o 120,000 72.000 102.000 Year 2 102.000 83,000 Beg. bal. Revenue ol o ol + 83.000 o 83,000 olw 83.000 Depreciation expense ol . 185.000 o 83.000 End. bal 83.000 3.000 Req 81 Inc Stmt>