The following information applies to the questions displayed below.] Golden Corp., a merchandiser, recently completed its 2017 operations. 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. The company's balance sheets and income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 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 $172,000 $ 115,800 79,000 534,000 728,800 307,000 95,000 613,000 880,000 356,500 (162,000) (108,000) $1,074,500 $ 927,800 $103,000 $79,000 29,100 108,100 36,000 139,000 576,000 172,000 71,700 $1,074,500 $ 927,800 608,000 204,000 123,500 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $1,832,000 1,094,000 738,000 Depreciation expense $ 54,000 502,000 Other expenses Income before taxes Income taxes expense Net income 556,000 182,000 33,200 $148,800