Q4. DBRAK Company's most recent balance sheet, income statement, and other important information for 2020 are presented below. (20marks) DBeak Company Balance Sheet December 31, 2020, and 2019 2020 2019 Assets Current Assets Cash Accounts receivable Merchandise inventory Prepaid expenses Noncurrent Assets Property, plant, and equipment Accumulated depreciation Long-term investments Total assets $ 590,000 $ 720,000 710,000 540,000 600,000 360,000 50,000 72,000 1,000,000 920,000 (620,000) (520,000) 280,000 350,000 $2610.000 $2.442.000 Liabilities and Owners' Equity Current Liabilities Accounts payable Prepared by- Aradhana Khera November 5, 2021 120,000 34,000 46,000 32,000 178,000 60,000 34,000 22,000 Accrued liabilities Interest payable Income tax payable Noncurrent Liabilities Bonds payable Owners' Equity Common stock Retained earnings Total liabilities and owners' equity 216,000 30,000 1,360,000 1,338,000 802.000 780.000 $2.610.000 $2.442.000 DBook Company Income Statement For the Year Ended December 31, 2020 , Sales Cost of goods sold Gross margin Operating expenses Depreciation expense Operating income Interest expense Gain on sale of equipment Loss on sale of long-term investments Income before taxes Income tax expense $1,960,000 1.204.000 756,000 270.000 260.000 226,000 (26,000) 40,000 16,000) 234,000 160,000 $ 74.000 Net income Additional data for 2020 1 Sold equipment with a book value of $38,000 (= $198,000 cost $160,000 accumulated depreciation) for $78,000 cash. Purchased equipment for $278,000 cash. Sold long-term investments for $74,000 cash. These investments had an original cost of $80,000. 1 Purchased long-term investments for $10,000 cash. 1 issued bonds for $186,000 cash. 1 Issued common stock for $22,000 cash. 1 Declared and paid $52,000 in cash dividends