2 Check my work Soft Touch Company was started several years ago by two golf instructors. The company's comparative balance sheets and income statement are presented below, along with additional information Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment $10,940 1,500 12,100 5,750 2, 600 11,000 (1,600) (2,91e) Total Assets $22,530 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 600 648 2,100 11,000 8,190 1,100 1,e50 1,000 11,000 3,680 Total Liabilities and stockholders' Equity $22,530 $17,750 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income $69,600 63,500 410 1,100 4,590 Additional Data: Additional Data: a. Bought new golf clubs using cash, $1,100 b Borrowed $1,100 cash from the bank during the year c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liablity accounts relating to income tax, assume that Income Tax Expense was fully paid in cash. B https/ewconnect.mhed connect html 12 Homework Help Sov SOFT TOUCH COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities: to search DII Prtscn. Home Home p 4 5 6 8