Golden Manufacturing Company started operations by acquiring $81,000 cash from the issue of common stock. On January 1, Year 1, the company purchased equipment that cost $71,000 cash, had an expected useful life of five years, and had an estimated salvage value of $7,100. Golden Manufacturing earned $85,690 and $61,380 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining-balance depreciation

Record the purchase in a horizontal statements model. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA) and net change in cash (NC).

B.

Prepare income statements for Year 1 and Year 2. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

GOLDEN MANUFACTURING COMPANY
Income Statements
	Year 1	Year 2

B2.

Prepare balance sheets for Year 1 and Year 2. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)

GOLDEN MANUFACTURING COMPANY
Balance Sheets
	Year 1	Year 2
Assets
Total Assets
Stockholders equity
Total stockholders equity

B3.

GOLDEN MANUFACTURING COMPANY
Statements of Cash Flows
	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

Income Statement GOLDEN MANUFACTURING COMPANY Horizontal Statements Model Balance Sheet Assets = Equity Retained Eaumont - Accumulated - Common Revenue + Equipment - Depreciation - Stock Earnings Statement of Cash Flows Event Cash Cash Expense = Net Income + ... - Year 1 Issue stock Purchase equipment Revenue Depreciation expense Balance Year 2 Beg. bal. Revenue Depreciation expenser End, bal. - Reqa Req B1 Inc Stmt >