Required information [The following information applies to the questions displayed below.] Golden Corp., a merchandiser, recently completed its 2017 operations. 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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and income statement follow. GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets $ 175,000 119,100 82,000 537,000 738,100 310,000 (163,500) (109,500 $1,093,100 $938,600 Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 99,500 617,500 892,000 364,600 39,000 148,000 $ 109,000 82,000 30,600 112,600 579,000 176,500 70,500 $1,093,100 $938,600 614,000 207,000 124,1003300- GOLDEN CORPORATION Income Statement For Year Ended December 31, 201 Sales Cost of goods sold Gross profit Operating expenses $1,847,000 1,097,000 750,000 $ 54,000 505,000 Depreciation expense Other expenses Income before taxes Income taxes expense Net income 559,000 191,000 37,400 $ 153,600