i Question 1-Test & After Module 7 - Connect Saved Required information [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. Assets Cash Accounts receivable GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 164,000 $ 107,000 83,000 71,000 601,000 526,000 848,000 704,000 335,000 299,000 (158,000) (104,000) Inventory Total current assets Equipment Accumulated 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 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes $ 1,792,000 1,086,000 706,000 494,000 54,000 158,000 $ 1,025,000 $ 87,000 28,000 $ 899,000 $ 71,000 25,000 115,000 96,000 592,000 568,000 196,000 160,000 122,000 75,000 $ 1,025,000 $ 899,000