Preparing a Balance Sheet and Statement of Cash Flows: Effects of Business Transactions The balance sheet items for Collier Butcher Shop (arranged in alphabetical order) were as follow s at July 1, current year. (You are to compute the missing figure for Retained Earnings.) During the next few days, the following transactions occurred. Additional capital stock was sold for $36,000. The accounts payable were paid in full. (No payment was made on the notes payable or salaries payable.) Equipment was purchased at a cost of $7,200 to be paid within 10 days. Supplies were purchased for $1,200 cash from a restaurant supply center that was going out of business. These supplies would have cost $2,400 if purchased through normal channels. b. Prepare a balance sheet at July 5, current year, and a statement of cash flows for July 1-5. Classify the payment of accounts payable and the purchase of supplies as operating activities