Exercise #2 The following is the income statement for Half-Life Corporation for the year ended 12/31 / 23 : Net Sales Revenue$2,200,000 Cost of Goods Sold($1,700,000) Salaries Expense($395,000) Depreciation Expense($50,000) Other Expenses($35,000) Loss on Sale of Equipment ($5,000) Net Income $15,000 Below are Half-Life's balance sheets as of 12/31 / 23 and 12/31/22:; 12/31 / 23; 12/31 / 22 Assets Cash $108,000 $120,000 Accounts Receivable $ 115,000 $95,000 Inventory $192,000 $ 220,000 Prepaid Rent$ 35,000 $ 30,000 Equipment $645,000 $510,000 Acc. Dep., Equipment ( $120,000) ($90,000) Total Assets $ 975,000 $885,000 Liabilities Accounts Payable Taxes Payable Long-Term Notes Payable $ 100,000 $20,000 $40,000 $ 85,000 $30,000 $50,000 Stockholders ' Equity Common Stock Retained Earnings Total Liabilities & S / E $660,000 $ 155,000 $975,000 $575,000 $145,000 $885,000