Chapter 13: Quavo, Inc., a merchandiser, recently completed the 2018 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow: Quavo, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Cash Accounts receivable Inventory Prepaid expenses Equipment Accum. depreciation-Equipment Total assets 125,370 $ 19,700 84,200 1,650 95,000 (16,000) 118,150 31,700 79,400 2,400 60,000 37,500) 254,150 309,920 $ Accounts payable Long-term notes payable Bonds payable Common stock, $5 par value Paid-in capital in excess of par value, common stock 11,700 78,500 29,500 91,000 15,000 8,500 50,000 90,000 11,650 10,650 Retained earnings 87,570 309,920 $ 80,000 254,150 Total liabilities and equity