Return Exercise 8-8A Effect of double-declining balance depreciation on financial statements LO 8-3 Golden Manufacturing Company started operations by acquiring $100,600 cash from the issue of common stock. On January 1, Year 1. the company purchased equipment that cost $100,600 cash, had an expected useful life of six years, and had an estimated salvage value of $20,120. Golden Manufacturing earned $88.160 and $61,090 of cash revenue during Year 1 and Year 2, respectively. Golden Manufacturing uses double-declining balance depreciation Required: Prepare income statements, balance sheets, and statements of cash flows for Year 1 and Year 2. Use a vertical statements format. (Hint Record the events in T-accounts prior to preparing the statements) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Amounts to be deducted and net loss should be indicated with a minus sign.) Answer is not complete. GOLDEN MANUFACTURING COMPANY Financial Statements Year 1 Year 2 Income statements Sales revenue S 88.160$ 61,090 Depreciation expense 33.5333 Net Income $ 54,627 $ 61,090 Balance sheets Assets Check my work mode: This shows what is correct or incorrect for the work you have con Year 1 Year 2 $ 61,090 4 Income statements Sales revenue Depreciation expense Net income Balance sheets Assets Cash Equipment Accumulated depreciation $ 88,160 33,533 $ 54,627 points $ 61,090 8 03:07:30 $ $ 0 Total assets Stockholders' equity Common stock Retained earnings > IS S 0 Total stockholders' equity Statements of cash flows Cash flows from operating activities: Cash flows from investing activities Accumulated depreciation $ 0 CA Total assets Stockholders' equity Common stock Retained earnings $ 0 $ Total stockholders equity Statements of cash flows Cash flows from operating activities: Cash flows from investing activities Cash flows from financing activities 0 Net change in cash Plus: Beginning cash balance Ending cash balance 0 S 0 S