Mary Walker, president of Rusco Company, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of this year. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker. Rusco Company Comparative Balance Sheet at July 31 Assets This Year Last Year Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Long-term investments $ 8,000 120,000 140,000 5,000 $ 21,000 00,000 90,000 9,000 273,000 50,000 200,000 70,000 Plant and equipment 430,000 300,000 Leas accumulated depreciation 60,000 50,000 Net plant and equipment 370,000 250,000 Total asseta $693,000 $520,000 Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $123,000 $ 60,000 Accrued liabilities 8,000 17,000 Income taxes payable 20,000 12,000 Total current liabilities 151,000 89,000 Bonds payable Total liabilities. Stockholders' equity: 70,000 221,000 89,000 Common stock 366,000 346,000 Retained earnings 106,000 Total stockholders' equity 472,000 85,00 431,000 5570 000