Audio City, Incorporated, 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: Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $68,000. b. Paid $12,500 on the long-term notes payable. c. Issued new shares of stock for $25,000 cash. d. Dividends of $4,500 were paid in cash. Current Year Previous Year $ 47,500 $ 54,000 17,500 17,500 13,000 19,000 213,000 (52,500) $ 240,000 $ 7,500 2,000 57,500 145,000 (40,000) $194,000 $ 18,000 1,000 70,000 90,000 65,000 83,000 $ 240,000 40,000 $194,000 $ 185,000 85,000 52,500 $ 47,500 e. Other expenses included depreciation, $12.500, salaries and wages, $17,500; taxes, $22,500. 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.