7. Exercise 8-17A (Algo) Effect of revenue expenditures versus capital expenditures on financial Statements LO 8-8 15 points Sellers Construction Company purchased a compressor for $102,000 cash. It had an estimated useful life of four years and a $10,300 salvage value. At the beginning of the third year of use the company spent an additionat $7590 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model Balance Sheet Book Income Statement Assets Statement of Cash Flows Cash 11,490 Net Inc Stockholders Equity .Com. Stk. + et Earn 25,600 42,00 Book Value of Compressor 56,150 Rev HA Exp. NA NA Hunt ferences Required Record the 57,590 expenditure in the statements model under each of the following independent assumptions in the Statement of Cosh Flows column, use the initials "OA" for operating activities, "FA" for financing activities, and "IA" for investing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.) The expenditure was for routine maintenance b The expenditure extended the compressor's life c The expenditure improved the compressor's operating capacity Print 0 Required Record the $7,590 expenditure in the statements model under each of the following independent assumptions (In the Statement of Cash Flows column, use the initials "OA" for operating activities, "FA" for financing activities, and "IA" for investing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.) a The expenditure was for routine maintenance b. The expenditure extended the compressor's life c The expenditure Improved the compressor's operating capacity Pferences Income Statement Sellers Construction Company Horizontal Statements Model Balance Sheet Assets Stockholders' Equity Cash Book Value of Common Retained Revenge Compressor Stock Earnings 11.490 25.600 12.040 + Statement of Cash Flow Net Income Expenses 56.150 + D