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 $ 179,000 105,500 623,500 908,000 375, 400 (165,500) $1,117,900 $ 123,500 86,000 541,000 750,500 314,000 (111,500) $ 953,000 Assets Cash 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 $ 117,000 43,000 160,000 $ 86,000 32,600 118,600 610,000 223,000 124,900 $1,117,900 583,000 182,500 68,900 $ 953,000 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,867,000 Cost of goods sold 1,101,000 Gross profit 766,000 Operating expenses Depreciation expense $ 54,000 Other expenses 509,000 563,000 Income before taxes 203,000 Income taxes expense 43,000 Net income $ 160,000 Additional Information on Current Year 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. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash received from customers $ Cash paid for other expenses Cash paid for income taxes Cash paid for inventory 1,811,500 (509,000) (16,000) $ 1,286,500 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment (61,400) (61,400) Net cash used in investing activities Cash flows from financing activities Cash paid for dividends Cash received from issuing stock (104,000) 67,500 $ Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (36,500) 1,188,600 123,500 1,312,100