AB Ltd. has MCC has prepared the Income statement including the following data (all sales are on account): Sales $80,000 Cost of Goods Sold $ 50,000 Gross Profit $ 25,000 Expenses $ 10,000 Net Profit $15,000 The comparative balance sheet shows the following data (by definition, accounts payable relates to merchandise purchases only): End of Year Beginning of Year Accounts Receivables (net) $7,000 $6,000 Inventory $3,000 $2,000 Prepaid Expenses $2,000 $1,000 Accounts Payable $1,500 $1,500