Cheryl Wilson, president of Rivers Company, considers $24,000 to be a minimum cash balance for operating purposes. As can be seen from the following statements, only $19,000 in cash was available at the end of 2011. Because the company reported a large net income for the year, and also issued bonds and sold some long-term investments, the sharp decline in cash is puzzling to Ms. Feldman Rivers Company Comparative Balance Sheet December 31, 2011, and 2010 2011 2010 Assets Current assets Cash Accounts Receivable Inventory Prepaid expenses $ 19,000 $ 37,800 215,200 198,400 19,800 204,800 253,600 9,800 Total current assets 487,200 471,200 Long-term investments 102,000 140,000 Plant and equipment Less accumulated depreciation 868,000 212,000 754,000 191,200 Net plant and equipment 656,000 562,800 Total assets $1,245,200 $1,174,000 Liabilities and Stockholders' equity Current liabilities Accounts payable Accrued liabilities Income taxes payable $ 178,600 $ 234,400 15,800 41,000 8,400 45,200 Total current liabilities Bonds Payable 232,200 212,000 291,200 108,000 Total liabilities 444,200 399,200 Stockholders' equity: Common stock Retained earnings 605,000 196,000 620,000 154,800 774,800 $1,245,200 $1,174,000 Total stockholders' equity 801,000 Total liabilities and stockholders' equity