Soft Touch Company was started several years ago by two golf instructors. The company's comparative balance sheets and income statement are presented below, along with additional information Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment $13,920 $ 8,750 3,800 10,000 Accumulated Depreciation-Equipment (3,330) (2,800) 2,800 11,000 $24,390 $19,750 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $1,300 2,300 1,650 1,000 10,000 4,800 1,120 3,300 10,000 8,670 $24,390 $19,750 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $76,200 69,500 530 2,300 Net Income $ 3,870 Additional Data a. Bought new golf clubs using cash, $1,000 b. Borrowed $2,300 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that Income Tax Expense was fully paid in cash