[The following information applies to the questions displayed below.] Golden Corporation'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, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Current Year Prior Year $ 172,000 95,000 613,000 880,000 356,500 (162,000) $ 1,074,500 $ 103,000 36,000 $ 115,800 79,000 534,000 728,800 307,000 (108,000) $ 927,800 $ 79,000 29,100 108,100 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 139,000 601,600 210,400 123,500 $ 1,074,500 576,000 172,000 71,700 $ 927,800 Sales GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income Additional Information on Current Year Transactions a. Purchased equipment for $49,500 cash. $ 1,832,000 1,094,000 738,000 502,000 54,000 182,000 33,200 $ 148,800 b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and paid $97,000 in cash dividends. nces Required information Cash flows from operating activities Net income GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Required information 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