Below are the year-end balance sheets for Virtual Toon Company (VTC):

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
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

VTC 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 been repaid. Assume that the company's sales in 2011 and 2012 were the same. Which of the following statements must be CORRECT?

Group of answer choices

Accounts receivable were an incremental source of cash in 2012.

The company had positive net income in 2012.

Inventories were an incremental source of cash in 2012.

Accounts payable were an incremental use of cash in 2012.

Notes payable were an incremental source of cash in 2012.