Below are the year-end balance sheets for Horror Movie Enterprises (HME): Assets: 2012 2011 Cash $ 200,000 $ 170,000 Accounts receivable 864,000 700,000 Inventories 2.000.000 1.400.000 Total current assets $3,064,000 $2,270,000 Net fixed assets 6.000.000 5.600.000 Total assets $9.064.000 $7.870.000 Liabilities and equity: Accounts payable $1,400,000 $1.090,000 Notes payable 1.600.000 1.800.000 Total current liabilities $3.000.000 $2.890.000 Long-term debt 2,400,000 2,400,000 Gammon stack 2000 Liabilities and equity: Accounts payable $1,400,000 $1,090,000 Notes payable 1,600,000 1.800,000 Total current liabilities $3,000,000 $2.890,000 Long-term debt 2,400,000 2,400,000 Common stock 3,000,000 2,000,000 Retained earnings 664.000 580,000 Total common equity $3.664.000 $2.580,000 Total liabilities and equity $9.064,000 $7.870,000 HME has never paid a dividend on its common stock, and it issued $2,400,000 of 10-year non- callable, long-term debt in 2011. As of the end of 2012, none of the principal on this debt had be repaid. Assume that the company's sales in 2011 and 2012 were the same. Which of the followin statements must be CORRECT? The company had negative net income in 2012. Accounts receivable were an incremental source of cash in 2012. Inventories were an incremental use of cash in 2012. Accounts payable were an incremental use of cash in 2012. Notes payable were an incremental source of cash in 2012