Mary Walker, president of Rusco Company, considers $23,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $18,000in cash was available at the end of 2014. 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 July 31, 2014 and 2013
	2014		2013
Assets
Current assets:
Cash	$	18,000	$	36,600
Accounts Receivable		203,600		213,900
Inventory		252,700		197,800
Prepaid expenses		9,100		18,600
Total current assets		483,400		466,900
Long-term investments		99,000		135,000
Plant and equipment		866,000		753,000
Less accumulated depreciation		211,500		190,900
Net plant and equipment		654,500		562,100
Total assets	$	1,236,900	$	1,164,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	177,700	$	233,300
Accrued liabilities		8,300		15,600
Income taxes payable		44,400		40,500
Total current liabilities		230,400		289,400
Bonds Payable		209,000		106,000
Total liabilities		439,400		395,400
Stockholders