Audio City, Inc. is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below Current Previous Year Year Balance Sheet at December 31 80,200 82,600 Cash Accounts Receivable 18,200 24,000 26,800 24,000 Inventory Equipment 239,000 158,000 Accumulated Depreciation-Equipment (72,000) (53,000) $292,200 $235,600 8,800 20,600 Accounts Payable Salaries and Wages Payable 2,200 1,000 Note Payable (long-term) 64,000 83,000 Common Stock 116,000 78,000 Retained Earnings 101,200 53,000 $292,200 $235,600 Income Statement Sales Revenue $224,000 Cost of Goods Sold 98,000 Other Expenses 72,000 54,000 Net Income Additional Data a. Bought equipment for cash, $81,000. b. Paid $19,000 on the long-term note payable c. issued new shares of stock for $38,000 cash. d. Dividends of $5,800 were paid in cash. e. Other expenses included depreciation, $19,000; salaries and wages, $24,000; taxes, $29,000. f. Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash