on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2016: Cash receipts: From customers $675,000 Interest on note 4,000 Loan from a local bank 100,000 Total cash receipts $779,000 Cash disbursements: Purchase of merchandise $390,000 Annual insurance payment 6,000 Payment of salaries and wages 210,000 Dividends paid to shareholders 10,000 Annual rent payment 24,000 $640,000 Total cash disbursements Selected balance sheet information: 31/12/2015 31/12/2016 Cash $25,000 $164,000 Accounts receivable 62,000 92,000 Inventory 80,000 62,000 Prepaid insurance. 2,500 ? Prepaid rent 11,000 ? Interest receivable 3,000 ? Note receivable 50,000 50,000 Equipment 100,000 100,000 Accumulated depreciation-equipment (40,000) (50,000) Accounts payable (for merchandise) 110,000 122,000 Salaries and wages payable 20,000 24,000 Note payable -0- 100,000 Interest payable -0- ? Additional information: