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Arch Associates reports the following comparative balance sheets and income statement information. Arch Associates Comparative Balance Sheets 12/31/Year 1 12/31/Year 2 Cash $ 12,000 $

Arch Associates reports the following comparative balance sheets and income statement information.

Arch Associates
Comparative Balance Sheets
12/31/Year 1 12/31/Year 2
Cash $ 12,000 $ 22,000
Accounts receivable 4,000 8,000
Prepaid insurance 10,000 8,000
Inventory 6,000 2,000
Property, plant and equipment 12,000 10,000
Total assets $ 44,000 $ 50,000
Accounts payable $ 8,000 $ 12,000
Salaries payable 10,000 4,000
Long term notes payable 8,000 6,000
Stockholders' equity 18,000 28,000
Total liabilities and equity $ 44,000 $ 50,000

Income Statement
Year Ended 12/31/Year 2
Revenue $ 70,000
Cost of goods sold 40,000
Gross margin 30,000
Operating expense 20,000
Net income $ 10,000

All inventory purchases are made on account. The amount of cash paid for inventory purchases during Year 2 was:

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