Mary Walker, president of Rusco Company, considers $46,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $41,000 in 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 Accounts receivable Inventory Prepaid expenses $ 41,000 $ 64,200 243,800 211,600 46,200 231,200 273,400 25,200 570,800 565,800 Total current assets Long-term investments Plant and equipment 168,000 250,000 912,000 223,000 776,000 197,800 Less accumulated depreciation Net plant and equipment Total assets 689,000 578,200 $1,427,800 $1,394,000 Liabilities and Stockholders' Equity Current liabilities: $ 198,400 $ 258,600 20,200 52,000 Accounts payable 10,600 62,800 Accrued liabilities Income taxes pavable 271,800 278,000 330,800 132,000 Total current liabilities Bonds payable Total liabilities Stockholders' equity: 549,800 462,800 Common stock Retained earnings 660,000 218,000 730,000 201,200 Total stockholders' equity 878,000 931,200