Comparative balance sheets for Creative Cabinetry, Inc. are shown below:

Assets 12-31-01 12-31-00 Cash $ 95,000 $ 33,000 Accounts receivable 23,160 22,500 Inventory 30,000 123,650 Prepaid rent 3,840 5,850 Total current assets 152,000 185,000 Land 83,000 72,000 Equipment 800,000 600,000 Accumulated depreciation (140,000) (90,000)

Total long-term assets 743,000 582,000 Total assets $895,000 $767,000 Liabilities and Shareholders’ Equity Current Liabilities Accounts payable $ 83,300 $ 48,100 Accrued liabilities 23,500 24,200 Short-term notes payable 62,000 51,000 Total current liabilities 168,800 123,300 Mortgage payable 547,200 383,500 Shareholders’ Equity Common stock 150,000 150,000 Retained earnings 29,000 110,200 Total shareholders’ equity 179,000 260,200 Total liabilities and shareholders’

equity $895,000 $767,000