Marigold Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Marigold as of May 31, 2020, are as follows. The company is preparing its statement of cash flows. MARIGOLD COMPANY COMPARATIVE BALANCE SHEET AS OF MAY 31 2020 2019 Current assets Cash $28,200 $20,200 Accounts receivable 75,700 57,700 Inventory 220,300 248,400 Prepaid expenses 9,100 7,000 Total current assets 333,300 333,300 Plant assets Plant assets 596,200 506,100 Less: Accumulated depreciation-plant assets 149,300 124,100 Net plant assets 446,900 382,000 Total assets $780,200 $715,300 Current liabilities Accounts payable $122,800 $115,500 Salaries and wages payable 47,700 72,200 Interest payable 27,100 25,200 Total current liabilities 197,600 212,900 Long-term debt Bonds payable Total liabilities 70,000 100,000 267,600 312,900 Stockholders' equity Common stock, $10 par 370,000 280,000 Retained earnings 142,600 122,400 Total stockholders' equity Total liabilities and stockholders' equity 512,600 402,400 $780,200 $715,300 MARIGOLD COMPANY INCOME STATEMENT FOR THE YEAR ENDED MAY 31, 2020 Sales revenue $1,267,400 Cost of goods sold 718,600 Gross profit 548,800 Expenses Salaries and wages expense 253,700 Interest expense 74,700 Depreciation expense 25,200 Other expenses 8,100 Total expenses 361,700 Operating income 187,100 Income tax expense 42,900 Net income $144,200 The following is additional information concerning Marigold's transactions during the year ended May 31, 2020. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. Plant assets costing $90,100 were purchased by paying $19,100 in cash and issuing 7,100 shares of stock. 4. The "other expenses" are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Marigold issued 1,900 shares of common stock at par value. 7. Cash dividends of $124,000 were declared and paid at the end of the fiscal year. MARIGOLD COMPANY Statement of Cash Flows (Partial) Adjustments to reconcile net income to +A > > > > > SA +A $