Afriend of yours is the president of Babble Imports Ltd. The company sells and services cars imported from Korea. Babble has just completed its first year of operations. The following balance sheet was prepared by the company bookkeeper (Click the icon to view the balance sheet.) (Click the icon to view the notes.) Required Requirement a. After adjusting for any errors, prepare a balance sheet for Babble as at December 31, 2021, using the currenton-current presentation. Ignore income taxes. (Do not calculate a revised net income. Simply plug in a net income figure to balance the balance sheet. Round your answers to the nearest whole number. Check your spelling carefully and do not abbreviate.) Babble Company Balance sheet At December 31, 2021 Babble Imports Ltd Balance Sheet December 31, 2021 Assets Current assets Cash 4100 $ 4,100 101,000 Accounts Receivable 152000 597000 Inventory 820,000 Cash in current account Accounts receivable (note 1) ) Cars and carparts (note 2) Accumulated depreciation on cars (note 3) Equipment (note 4) Land held for future development (87.600) 174,000 228,000 Total current assets 753100 Non-current assets Cars $ 1,239,500 Equipment-net Land held for future development 228000 Equities Accounts payable (note 5) $ 343,000 320,000 Total non-current assets Bank ban payable (note 6) Common shares (49,520 shares authorized and issued) 495,200 81,300 Net income Total assets S 1,239,500 1. Accounts receivable is comprised of the following: Debit balances in customer accounts S 152,000 (51,000) Credit balances in customer accounts $ 101,000 2. The cars and car parts account is comprised of the following: Car parts for service department (at cost) $ 67,000 Cars intended for resale (at retall price) 645,000 Cars used by executives for business purposes 108,000 $ 820,000 The purchase price of the cars intended for resale was $530,000. The cars for the executives were purchased on June 30, 2021, at a cost of $108,000. 3. All cars that require depreciation are being depreciated on a straight-line basis with a three-year estimated useful life and a residual value of 30% of original cost. 4. The equipment was purchased for $174,000 on January 2, 2021. The price paid was a bargain because the regular price for this equipment was $216,000. The equipment should last for seven years but would be worthless at that time. However, the company plans to replace it at the end of five years and expects to be able to sell it for $24,000 at that time. The company wants to use the declining balance method for depreciation with a rate twice the straight-line rate but has not yet calculated or recorded the depreciation expense for the equipment for the year. 5. Accounts payable is comprised of the following balances: Amounts owing to suppliers S 113,000 Loan received from the majority shareholder 230,000 5 343,000 The loan was received from the majority shareholder on October 1, 2021. The loan is repayable over four years with annual payments of $52,000 plus accrued interest at 6% per year. The first payment is due on October 1, 2022. No interest has been accrued on the loan. 6. The bank loan is due on demand and is secured by the cars held for resale