Cheryl Wilson, president of Rivers Company, considers $26,000 to be a minimum cash balance for operating purposes. As can be seen from the following statements, only $21,000 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 Assets Current assets Cash Accounts Receivable Inventory Prepaid expenses $ 21,000 $ 40,200 217,800 199,600 22,200 207,200 255,400 11,200 lotal current assets 494,800 479,800 Long-term investments 108,000 150,000 Plant and equipment Less accumulated depreciation 872,000 213,000 756,000 191,800 Net plant and equipment 659,000 564,200 lotal assets $1,261,800 $1,194,000 Liabilities and Stockholders' equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 180,400 $ 236,600 16,200 42,000 8,600 46,800