Required information (The following information applies to the questions displayed below.) Golden Corp.'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. (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Prior Year GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Assets Cash $ 183,000 Accounts receivable 111,500 Inventory 629,500 Total current annet 924,000 Equipment 386,200 Accum. depreciation-Equipment (167,500) Total asseto $1,142,700 Liabilities and Equity Accounts payable 125,000 Income taxes payable 47,000 Total current liabilities 172,000 Equity Common stock, $2 par value 614,800 Paid-in capital in excess of par value, 230,200 common stock Retained earnings 125, 700 Total liabilities and equity $1,142,700 $ 127,900 90,000 545,000 762,900 318,000 (113,500) $ 967,400 $ 90,000 34,600 124,600 587,000 188,500 67,300 $ 967,400 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,887,000 Cost of goods sold 1,105,000 Gross profit 782,000 Operating expenses Depreciation $ 54,000 expense Other expenses 513,000 567,000 Income before taxes 215,000 Income taxes 49,600 expense Net income $ 166,400 Additional Information on Current Year Transactions a. Purchased equipment for $68,200 cash. b. Issued 13,900 shares of common stock for $5 cash per share. c. Declared and paid $108,000 in cash dividends. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year