A comparative balance sheet for Zephyr Corporation is provided in the Working Papers. The Income statement for the current year indicates that net income was \($10,160.00\) and the depreciation expense was \($27,300.00.\) Statement paper and a form for analyzing changes in accounts are also provided in the Working Papers. Your instructor will guide you through the following examples. 

1. For each item listed on the form, record the appropriate December 31 balances for the current and prior years. 

2. For each item listed on the form, classify it as a current asset or current liability. 

3. Compute the amount of increase or decrease from the prior year. 

4. Indicate if the increase or decrease represents a source of cash or a use of cash. 

5. Prepare the operating activity section of the statement of cash flows for the current year ended December 31.