Scenario

Below is information from the Biddle Company income statement and current assets and current liabilities from the balance sheet as of December 31, 2017 and 2018.

Biddle Company Income Statement For Year Ended December 31, 2018 Sales revenue S 142.200 Expenses Cost of goods sold 57.000 Depreciation expense 19.500 Salaries expense 33,000 Rent expense 10.500 Insurance expense 5.300 Interest expense 5.100 Utilities expense 4.300 Net income 7.500 Biddle Company Selected Balance Sheet Accounts At December 31 2018 2017 Accounts receivable 7.100 8.800 Inventory 3.480 2,290 Accounts payable 5.900 7.600 Salaries payable 1.180 850 Utilities payable 520 310 Prepaid insurance 410 580 Prepaid rent 520 330