Cheryl Wilson, president of Rivers Company, considers $38,000 to be a minimum cash balance fo operating purposes. As can be seen from the following statements, only $33,000 in cash was available a 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: S 33,000 S 54,600 233,400 206,800 38,800 Cash Accounts Receivable 221,800 266,200 19,800 Prepaid expenses Total current assets 540,400 531,400 144,000 210,000 768,000 195,400 Plant and equipment 896,000 219,000 Net plant and equipment 677,000572,600 Total assets $1,361,400 S1,314,000 Liabilities and Stockholders' equity Current liabilities: Accounts payable Accrued liabilities S 191,200 S 249,800 18,800 48,000 9,800 58,400 Income taxes payable Total current liabilities Bonds Payable 257,400 254,000 316,400 138,000 Total liabilities 511,400 452,400 Stockholders' equity Common stock 640,000 210,000 690,000 171,600 Retained earnings Total stockholders equity 850,000 881,600 Total liabilities and stockholders' equity $1,361,400 S1,314,000