8 2 points Skipped eBook 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. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable. Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Print Income Statement Service Revenue References Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Additional Data: a. Bought new golf clubs using cash, $1,200. b. Borrowed $2.800 cash from the bank during the year 4,300 Current Year Previous Year $ 14,520 $10,000 3,200 13,200 (3,880) 12,000 (3,300) $ 27,040 $23,000 $ 1,800 $2,800 1,320 1,900 3,800 12,000 8,120 5,300 $ 27,040 $ 23,000 $ 78,200 72,000 580 2,800 $ 2,820 1,000 12,000 c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that Income Tax Expense was fully paid in cash