\begin{tabular}{|c|c|c|c|} \hline 1 & & Dec. 31,20 Y8 & Dec. 31, 20Y7 \\ \hline 2 & Assets & & \\ \hline 3 & Cash & $95,000.00 & $110,000.00 \\ \hline 4 & Accounts receivable (net) & 260,000.00 & 280,000.00 \\ \hline s & Inventories & 520,000.00 & 450,000.00 \\ \hline 6 & 6 Prepaid expenses & 15,000.00 & 5,000.00 \\ \hline & 7 Equipment & 1,130,000.00 & 800,000.00 \\ \hline & 8 Accumulated depreciation-equipment & (235,000.00) & (190,000.00) \\ \hline & Total assets & $1,785,000.00 & $1,455,000.00 \\ \hline & Liabilities and Stockholders' Equity & & \\ \hline & I1 Accounts payable (merchandise creditors) & $100,000,00 & $75,000,00 \\ \hline & 11 Mortgage note payable & 0.00 & 500,000.00 \\ \hline & is Common stock, S10 par & 500,000.00 & 200,000,00 \\ \hline & 14 Paid-in capital in excess of par-common stock & 400,000.00 & 100,000.00 \\ \hline & is Retained earnings & 785,000.00 & 580,000,00 \\ \hline & Total liabilities and stockholders' equity & $1,785,000.00 & $1,455,000.00 \\ \hline \end{tabular} Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $250,000. b. Depreciation reported on the income statement, $135,000. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 30,000 shares of common stock were issued at $20 for cash. 1. Cash dividends declared and paid, $45,000. Statement of Cash Flows (Label)