Required information

Use the following information for the Problems below.

[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.

GOLDEN CORPORATION Comparative Balance Sheets December 31
	Current Year						Prior Year
Assets
Cash		$	183,000					$	127,900
Accounts receivable			111,500						90,000
Inventory			629,500						545,000
Total current assets			924,000						762,900
Equipment			386,200						318,000
Accum. depreciationEquipment			(167,500	)					(113,500	)
Total assets		$	1,142,700					$	967,400
Liabilities and Equity
Accounts payable		$	125,000					$	90,000
Income taxes payable			47,000						34,600
Total current liabilities			172,000						124,600
Equity
Common stock, $2 par value			614,800						587,000
Paid-in capital in excess of par value, common stock			230,200						188,500
Retained earnings			125,700						67,300
Total liabilities and equity		$	1,142,700					$	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 expense	$	54,000
Other expenses		513,000			567,000
Income before taxes					215,000
Income taxes expense					48,600
Net income				$	166,400

Additional Information on Current Year Transactions

1. Purchased equipment for $68,200 cash.
2. Issued 13,900 shares of common stock for $5 cash per share.
3. Declared and paid $108,000 in cash dividends.