Mary Walker, president of Rusco Company, considers $26,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $21,000 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: $ 21,000 228,400 255,40e 11,200 $ 40,200 217,800 199,600 22,200 516,000490 Accounts Receivable Inventory Prepaid expenses Total current assets Long-term investments Plant and equipment 108,150,000 756,000 213,000191,800 659,000564,200 $1,194,000 872,00e Less accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: $1,283,000 $ 292,800 8,600 46,800 348,200 218,000 $ 236,600 16,200 42,000 294,800 Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds Pavable Total 1iabilities Stockholders' equity: 2990 112,000 566,200406,800 630,000 157,200 787,200 $1,194,000 Common stock Retained earnings 650,000 66 , 800 716,800 $1,283,000 200 Total stockholders' equity Total liabilities and stockholders equity