Required information [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 $ 176,000 101,000 619,000 $ 120,200 83,000 896,000 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable 367,300 (164,000) $ 1,099,300 $111,000 40,000 538,000 741,200 311,000 (110,000) $ 942,200 $ 83,000 31,100 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 151,000 114,100 606,400 580,000 217,600 178,000 124,300 70,100 $ 942,200 $ 1,099,300 GOLDEN CORPORATION Sales Cost of goods sold Gross profit Income Statement For Current Year Ended December 31 $ 1,852,000 1,098,000 754,000 506,000 54,000 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income Additional Information on Current Year Transactions a. Purchased equipment for $56,300 cash. 194,000 38,800 $ 155,200 b. Issued 13,200 shares of common stock for $5 cash per share. c. Declared and paid $101,000 in cash dividends.