An analysis of WTIs insurance policies shows that $2,500 of coverage has expired. An inventory count shows that teaching supplies costing $3,080 are available at year-end. Annual depreciation on the equipment is $6,200. Annual depreciation on the professional library is $11,800. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,800, and the client paid the first five months fees in advance. When the cash