QUESTION 4 On March 31, 2012, Destin Incorporated reported the following balance sheet: Assets Cash 3,000 Inventory 14,000 Prepaid Insurance 3,000 Equipment (net) 20,000 Total Assets 40,000 Liabilities & Owners' Equity Loan Payable 10,000 Common Stock 25,000 Retained Earnings 5,000 Total Liabilities and OE 40,000 During the month ended April 30, 2012, Destin reports the following activities: 1. They earn revenue totaling $16,000 related to selling inventory, all received in cash. The cost of the inventory sold is $9,000. 2. Employees earn $2,000, all of which is paid in cash during April. 3. Other operating expense total $1,000, all paid in cash during April. 4. They purchase inventory for cash at a total cost of $10,000.