You have the following comparative balance sheets for a restaurant for the years ending December 31, 2004, and December 31, 2005. Calculate the change in working capital and prepare the restaurant’s statement of sources and uses of working capital for the year ending December 31, 2005.

a. Net income for year $7,000. Annual depreciation of $1,000 was included as an expense to arrive at net income.

b. New equipment costing $4,000 was purchased.

c. Dividends of $6,000 were paid out.

d. New shares (100 at $10 each) were issued.

e. The long-term loan was increased by $2,000.

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ASSETS Cash Accounts receivable Food and beverage inventories Furniture and equipment Accumulated depreciation Total LIABILITIES & STOCKHOLDERS' EQUITY Accounts payable Income tax payable Long-term loan Common stock Retained earnings Total Yr. 2004 Yr. 2005 $14,800 8,300 $15,600 7,700 7,900 9,700 15,500 19,500 ( 3,500) $43,000 ( 4,500) $48,000 $ 5,600 $ 7,800 1,400 200 25,800 27,800 4,200 5,200 6,000 7,000 $43,000 $48,000