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 Year			Previous Year
Balance Sheet at December 31
Cash	$	67,500		$	71,600
Accounts Receivable		16,200			21,500
Inventory		23,800			21,500
Equipment		229,000			153,000
Accumulated DepreciationEquipment		(64,500	)		(48,000	)
	$	272,000		$	219,600
Accounts Payable	$	8,300		$	19,600
Salaries and Wages Payable		2,000			1,000
Note Payable (long-term)		61,500			78,000
Common Stock		106,000			73,000
Retained Earnings		94,200			48,000
	$	272,000		$	219,600
Income Statement
Sales Revenue	$	209,000
Cost of Goods Sold		93,000
Other Expenses		64,500
Net Income	$	51,500

Additional Data:

a.	Bought equipment for cash, $76,000.
b.	Paid $16,500 on the long-term note payable.
c.	Issued new shares of stock for $33,000 cash.
d.	Dividends of $5,300 were paid in cash.
e.	Other expenses included depreciation, $16,500; salaries and wages, $21,500; taxes, $26,500.
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.

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 Cash Accounts Receivable Inventory Equipment $ 67,500 $ 71,600 21,500 23,800 21,500 229,000 153,000 Accumulated Depreciation-Equipment (64,500) (48,000) 16,200 $272,000 $219,600 Accounts Pavable Salaries and Wages Payable Note Payable (long-term) Common Stock $ 8,300 $ 19,600 1,000 61,500 78,000 73,000 94,20048,000 2,000 106,000 etained EarningS $272,000 $219,600 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $209,000 93,000 64,500 Net Income $ 51,500 Additional Data a. Bought equipment for cash, $76,000 b. Paid $16,500 on the long-term note payable c. Issued new shares of stock for $33,000 cash d. Dividends of $5,300 were paid in cash e. Other expenses included depreciation, $16,500; salaries and wages, $21,500; taxes, $26,500 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