Spirit Company, a merchandiser, recently completed its 2013 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow: SPIRIT COMPANY Comparative Balance Sheet December 31, 2013 and 2012 2013 2012 Assets Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Long-term notes payable Common stock, S5 par value Paid-in capital in excess of par, common S 49,200 S 73,500 51,000 276,000 252,500 1,600 159,000 106.500 (31,000) (40,000) $520,030 $445,100 65,830 1,000 S 58,555S112,000 7,000 48,500 162,750150,750 9,000 65,000 36,000 stock Retained earnings Total liabilities and equity 188,725126,850 $520,030 $445,100