Prepare an accrual basis income statement for 2016(ignore income taxes) and determine the following balance sheet amounts.

Cash receipts From customers Interest on note Loan from a local bank $720,000 4,720 80,000 Total cash receipts $804,720 Cash disbursements: Purchase of merchandise Annual insurance payment Payment of salaries and wages Dividends paid to shareholders Annual rent payment $399,000 7,080 219,000 10,000 28,500 Total cash disbursements $663,580 Selected balance sheet information