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[The following information applies to the questions displayed below.] Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.

GOLDEN CORPORATION
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 167,000	$ 110,300
Accounts receivable	87,500	74,000
Inventory	605,500	529,000
Total current assets	860,000	713,300
Equipment	343,000	302,000
Accumulated depreciationEquipment	(159,500)	(105,500)
Total assets	$ 1,043,500	$ 909,800
Liabilities and Equity
Accounts payable	$ 93,000	$ 74,000
Income taxes payable	31,000	26,600
Total current liabilities	124,000	100,600
Equity
Common stock, $2 par value	595,600	571,000
Paid-in capital in excess of par value, common stock	201,400	164,500
Retained earnings	122,500	73,700
Total liabilities and equity	$ 1,043,500	$ 909,800

GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales	$ 1,807,000
Cost of goods sold	1,089,000
Gross profit	718,000
Operating expenses (excluding depreciation)	497,000
Depreciation expense	54,000
Income before taxes	167,000
Income taxes expense	26,200
Net income	$ 140,800

Additional Information on Current Year Transactions

Purchased equipment for $41,000 cash.

Issued 12,300 shares of common stock for $5 cash per share.

Declared and paid $92,000 in cash dividends.

GOLDEN CORPORATION
Spreadsheet for Statement of Cash Flows
For Current Year Ended December 31
	December 31, Prior Year	Analysis of Changes		December 31, Current Year
		Debit	Credit
Balance sheetdebit balance accounts
Cash	$110,300			$167,000
Accounts receivable	74,000
Inventory	529,000
Equipment	302,000
	$1,015,300			$167,000
Balance sheetcredit balance accounts
Accumulated depreciationEquipment	$105,500
Accounts payable	74,000
Income taxes payable	26,600
Common stock, $2 par value	571,000
Paid-in capital in excess of par value, common stock	164,500
Retained earnings	73,700
	$1,015,300			$0
Statement of cash flows
Operating activities
Investing activities
Financing activities
		$0	$0