Sellers Construction Company purchased a compressor for $106,000 cash. It had an estimated useful life of four years and a $8,400 salvage value. At the beginning of the third year of use, the company spent an additional $9,360 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Balance Sheet Assets Book Value of Compressor 57,200 Statement of Cash Flows Income Statement Stockholders' Equity Com. Stk. Ret. Earn. Rev. - Exp. = Net Inc. 22,800 47,370 NA - NA = NA + = Cash 12,970 + + NA Required Record the $9,360 expenditure in the statements model under each of the following independent assumptions: (In the Statement of Cash Flows column, use the initials "OA" for operating activities, "FA" for financing activities, and "IA" for investing activity. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require input.) a. The expenditure was for routine maintenance. b. The expenditure extended the compressor's life. c. The expenditure improved the compressor's operating capacity. Sellers Construction Company Horizontal Statements Model Income Statement Balance Sheet Assets Stockholders' Equity Book Value of Common Retained Cash + Compressor Stock Earnings 12,970 + 57,200 = 22,800 + 47,370 Statement of Cash Flows Revenue Net Income Expenses + = a. + b. + + + + C. +