Raintree Corporation maintains its records on a cash basis. At the end of each year the company's accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2021: Cash receipts: From customers $450,000 Interest on note 3,000 Issue of common stock 50,000 Total cash receipts $503,000 Cash disbursements: Purchase of merchandise $220,000 Annual insurance payment 9,000 Payment of salaries 180,000 Dividends paid to shareholders 6,000 Annual rent payment 12,000 Total cash disbursements $427,000 Selected balance sheet information: Cash Accounts receivable Inventory 12/31/2020 $ 25,000 12/31/2021 $101,000 42,000 70,000 60,000 82,000 Prepaid insurance 2,000 Prepaid rent 7,000 Interest receivable 1,500 7 Note receivable 50,000 50,000 Equipment 150,000 150,000 Accumulated depreciation-equipment Accounts payable (for merchandise) (40,000) (55,000) 50,000 Salaries payable 62,000 20,000 28,000 Connon stock 200,000 250,000 Dividends 6,000 Additional information: