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 $ 167,000 87,500 605,500 860,000 343,000 (159,500) $1,043,500 $ 110,300 74,000 529,000 713,300 302,000 (105,500) $ 909,800 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 $ 93,000 31,000 124,000 $ 74,000 26,600 100,600 595,600 201,400 122,500 $1,043,500 571,000 164,500 73,700 $ 909,800 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales $1,807,000 Cost of goods sold 1,089,000 Gross profit 718,000 Operating expenses Depreciation expense $ 54,000 Other expenses 497,000 551,000 Income before taxes 167,000 Income taxes expense 26,200 Net income $ 140,800 Additional Information on Current Year Transactions a. Purchased equipment for $41,000 cash. b. Issued 12,300 shares of common stock for $5 cash per share. c. Declared and paid $92,000 in cash dividends. 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