Check my work Mary Walker, president of Rusco Company, considers $37,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $32,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco Company Comparative Balance Sheet at July 31 Assets Current assets: Cash Accounts Receivable Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment Less accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current Liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds Payable Total liabilities Stockholders' equity: Connon stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year Last Year $ 32,000 $ 53,400 243,800 265,300 232,100 206,200 18,908 35,400 560,000 527,100 141,000 205,000 894,000 767,000 218,500 195,100 675,500 571,900 $ 1,376,500 $1,304,000 $ 248,700 $178,400 9,700 18,400 55,600 47,500 314,000 244,300 251,000 134,000 565,000 378,300 732,500 685,000 79,000 240,700 811,500 925,700 $ 1,376,500 $ 1,384,000