Company X's Selected Balance Sheets Items December 31 in year 1 and 2 Assets Year 1 Year 2 Change Cash $39 $32 ($7) AR 25 22 ($3) Supplies 16 21 $5 Prepaid Rent 18 15 ($3) PPE 230 290 $60 (Acc. Depr.) -85 -120 ($35) Investments 30 40 $10 Liabilities & Owners' Equity: Year 1 Year 2 Change Accounts Payable $17 $1 ($16) Taxes Payable 21 8 ($13) Salaries Payable Notes Payable 8 7 ($1) 42 18 ($24) Bonds Payable 55 90 $35 Common Stock 90 110 $20 Add'l Paid-in Capital 65 79 $14 Retained Earnings 30 35 $5 Sales Expenses: Company X's Income Statement For the Year Ended Dec. 31, Year 2 $270 Salaries Rent $60 50 Interest 12 Depreciation 55 Taxes 30 Supplies 20 Total Expenses $227 Operating Income $43