5. Below is an Income Statement and a Statement of Cash Flows for Morrissey Corporation for Year 8. Assuming all sales are made on account and all inventory are purchased on account. (12 points) AR. AP Income Statement For the Year Ended December 31, Year 8 Sales Revenue $12,400 Gain on Sale of Equipment 60 Interest Revenue 16 Total Revenues $11,476 8 Cost of Goods Sold (7,070) Selling and Administrative Expono (2.240) Cost of Goods Sold (7,070) Selling and Administrative Expense (2,240) Interest Expense (210) Income Tax Expense (752) Net Income $ 2,204 Statement of Cash Flows For the Year Ended December 31, Year 8 Operations Net Income $2,204 Depreciation 370 Gain on Sale of Equipment (60) Increase in Accounts Receivable (160) Increase in Prepayments (70) Decrease in Income Tax Payable (25) Decrease in Other Current Liabilities (150) Decrease in Inventories 140 Increase in Accounts Payable-Merchandise 175 Cash Flow from Operations $2,424 Investing Sale of Equipment $ 310 Acquisition of Property, Plant and Equipment (610) Acquisition of Marketable Securities (1,300 Cash Flow from Investing $(1,600) Financing Decrease in Short-term Borrowing S(120) Increase in Long-term Debt 550 Increase in Common Stock 400 Decrease in Long-term Debt (200) Dividends (390) Cash Flow from Financing $ 240 Change in Cash $ 1,064 Cash-January 1, Year 8 850 Cash-December 31, Year 8 $ 1,914 Required: a. Compute the amount of cash collected from customers during Year 8. b. Compute the amount of cash paid to suppliers for merchandise during Year 8. c. Property, plant and equipment (at cost) had a balance of $3,700 on January 1, Year 8 and $3,940 on December 31, Year 8. Accumulated depreciation had a balance of $1,290 on January 1, Year 8 and $1,540 on December 31, Year 8. Give the journal entry that Morrissey Corporation made in its accounting records during Year 8 to record the sale of the equipment d. The balance in the retained earnings account on December 31, Year 8 after closing entries was $1,154. Compute the balance in the retained earnings account on January 1, Year 8