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Exercise 8-8A Effect of double-declining balance depreciation on financial statements LO 8-3 Golden Manufacturing Company started operations by acquiring $127700 cash from the issue of common stock. On January 1. Year 1, the company purchased equipment that cost $127700 cash, had an expected useful life of six years, and had an estimated salvage value of $25,540. Golden Manufacturing earned $85,920 and $67,640 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.) nces GOLDEN MANUFACTURING COMPANY Financial Statements Year 1 Income statements Year 2 $ 0 $ 0 Balance sheets Assets $ o $ 0 Total assets Stockholders' equity GOLDEN MANUFACTURING COMPANY Financial Statements Year 1 Year 2 Income statements 0$ 0 Balance sheets bok Assets int "ences $ 0 $ 0 Total assets Stockholders' equity S 0 $ 0 Total stockholders' equity Statements of cash flows Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Net change in cash 0 0 Ending cash balance $ 0 $ 0 w Prev 1 of 4 MacBook Pro

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