Income Statement Adjustment 1 Sales Revenue $ 31,500,000 (1.205.000) Cost of Goods Sold (26,250,000) (1.925,000) (295,000) $ 175,000 Rent Expense Utilities Expense Depreciation Expense Bad Debts Expense Interest Expense Loss on Sale of Building Gain on Sale of Land (840,000) (180,000) (500.000) 0 Adjustment 2 (if needed) Cash Flows 30,000,000 (28,000,000) (1,020,000) (500,000) (850,000) 850,000 (536,000) 536,000 (1,300.000) (160,000) (640,000) 640,000 540,000 (540,000) Income Tax Expense Net Income (449,600) 244,100 $ 674,400 0 (1,460,000) 0 0 (205,500) $ (1.185,500) The worksheet above was created by Knk, Inc. to help prepare the operating section of their statement of cash flows for the year ended Dec 31, 20xX5. Using the information in the worksheet, answer the following questions: 1. If Knk reported an Accounts Receivable balance (as of January 1, 20x5) of $6,000,000, what Accounts Receivable balance will be reported on their December 31, 20X5 balance sheet? Accounts Recivable Balance, Dec 31, 20x5