Sellers Construction Company purchased a compressor for $113,800 cash. It had an estimated useful life of four years and a $11,000 salvage value. At the beginning of the third year of use, the company spent an additional $9,290 related to the equipment. The companys financial condition just prior to this expenditure is shown in the following statements model:

Assets

=

Equity

Rev.

Exp.

=

Net Inc.

Cash Flow

Cash

+

Book Value of Compressor

=

Com. Stk.

+

Ret. Earn.

12,390

+

62,400

=

23,800

+

50,990

NA

NA

=

NA

NA

Required Record the $9,290 expenditure in the statements model under each of the following independent assumptions: (In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities, and "IA" for investing activity. Enter any decreases to account balances with a minus sign. Not all cells in the "Cash Flow" column may require an input - leave cells blank if there is no corresponding input needed.) a. The expenditure was for routine maintenance. b. The expenditure extended the compressors life. c. The expenditure improved the compressors operating capacity.

Revenue - Expenses = Net Income Cash Flow Assets Book Value of Cash Compressor 12,390 62,400 Stockholders' Equity Common Retained Stock Earnings 23,800 50,990 20 + | + + + + ooo + +