3. The Cloverleaf Corporation began business on January 1, 2016. The following transactions took place during the year (Assume all transactions involve cash): 1.) Acquired $5,000 of capital from the owners. 2.) Purchased $4,000 of direct raw materials. 3.) Used $3,500 of direct raw materials. 4.) Paid production workers $2,500. 5.) Paid $1,500 for manufacturing overhead. (Applied and actual overhead are the same.) 6.) Started and completed 2,000 units of WIP inventory 7.) Sold 1,500 units for $8 each. 8.) Paid $2,500 for selling and administrative expenses. The amount of raw materials inventory reported on the balance sheet at December 31, 2016 would be: