Problem 1 (16 Marks) Consider the following financial statements for XYZ Inc. Balance Sheet 2020 2021 Assets Current assets Cash $5,000 $6,500 Accounts receivable 30,000 $31,500 Inventory 40,000 $42,000 Total $75,000 $80,000 Fixed assets Net plant and equipment 375,000 $393,750 Total assets $450,000 $473,750 Liabilities and Owners' Equity Current liabilities Accounts payable $50,000 $53,750 Notes payable 25,000 $26,250 Total $75,000 $80,000| Long-term debt $85,000 $89,250 Owners' equity Common stock $60,000 $63,000 Accumulated retained 230,000 241,500 earnings Total $290,000 $304,500 Total liabilities and owners' $450,000 $473,750 equity