Mary Walker, president of Rusco Company, considers $22,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $17,000 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 This Year Last Year Assets Current assets: $ 35,420 212,620 197,200 17,400 $ 17,000 222. 251,800 3,400 500,000 96,829 864,000 211.ee 653,800 $1.249.90 130,000 752,000 190.680 561.489 $1.154,00 Accounts Receivable Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment Less accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds Payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 232.200 $ 175,400 15.40 40. 230. 104.000 31, 620. 610.000 209.20 819,200 $1,154.000 $1,200. usco Company Income Statement For This Year Ended July 31 Sales Cost of goods sold Gross margin Selling and administrative expenses et sperating income Monoperating its Gain on sale of investments LOSS on sale of equipment Income before taxes Incotes o income 224,700 90, 521,000 IM (Prey