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. Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 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 2017 2016 $ 179,000 105,500 $ 123,500 623,500 908,000 375,400 (165,500) $1,117,900 $ 117,000 86,000 541,000 750,500 314,000 (111,500) $ 953,000 $ 86,000 32,600 43,000 160,000 118,600 622,000 583,000 211,000 182,500 124,900 68,900 $1,117,900 $ 953,000 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit $1,867,000 1,101,000 766,000 Operating expenses Depreciation expense $ 54,000 Other expenses 509,000 563,000 Income before taxes Income taxes expense Net income 203,000 43,000 $ 160,000 Additional Information on Year 2017 Transactions a. Purchased equipment for $61,400 cash. b. Issued 13,500 shares of common stock for $5 cash per share. c. Declared and paid $104,000 in cash dividends. Required information GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: $ 0 Cash flows from investing activities: Cash flows from financing activities: Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 0 0 $ 0 $ 0