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, $77,000. b. Paid $17,000 on the long-term notes payable. c. Issued new shares of stock for $34,000 cash. Current Year $ 70,100 16,600 24,400 231,000 (66,000) $ 276, 100 $ 8,400 2,100 62,000 108,000 95,600 $ 276,100 $ 212,000 94,000 66,000 $ 52,000 Previous Year $ 73,800 22,000 22,000 154,000 (49,000) $ 222,800 $ 19,800 1,000 79,000 74,000 49,000 $ 222,800 d. Dividends of $5,400 were paid in cash. e. Other expenses included depreciation, $17,000; salaries and wages, $22,000; taxes, $27,000. 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.

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 Additional Doto: a. Bought equipment for cash, $77,000, b. Paid $17,000 on the long-term notes payable. c. Issued new shares of stock for $34,000 cash. d. Dividends of $5.400 were paid in cash. Other expenses included depreciation, \$17,000; salaries and wages, \$22,000; taxe\$, \$27,000. 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