Here is the problem: Homez Company uses the perpetual inventory procedure. Given below is an abbreviated balance sheet for the company as of Dec. 31, 2019: Current Assets: Cash 20,000 Accounts Receivable. 40,000 Inventory 90,000 Prepaid Expenses 7,000 Total Current Assets 157,000 Fixed Assets: Land 20,000 Buildings 140,000 Less Accumulated Depreciation 60,000 80,000 Equipment 42,000 Less Accumulated Depreciation 10,000 32,000 Total Fixed Assets 132,000 Total Assets 289,000 Current Liabilities: Accounts Payable 22,000 Income Taxes Payable 2,600 Accrued Expenses Payable 4,400