The comparative Balance Sheets and Income Statement of a Corporation appear below. A Corporation

Income Statement for the Year ended December 31, 2020

2020

$

Net Sales 884,000

Cost of Goods Sold (508,000)

Gross Margin 376,000

Operating Expenses (including

Depreciation Expense of $20,000) (204,000)

Income from Operations 172,000

Interest Expense (24,000)

Income before Income Taxes 148,000

Income Taxes (28,000)

Net Income 120,000

A Corporation

Comparative Balance Sheets as at December 31, 2020 and 2019

2020 2019

Assets:

Cash 24,000 40,000

Account Receivable (Net) 178,000 146,000

Inventory 240,000 180,000

Prepaid Expenses 10,000 14,000

Building 400,000 -

Accumulated Depreciation (20,000) -

Total Assets 832,000 380,000

Liabilities & SHE:

Account Payable 74,000 96,000

Income Taxes Payable 6,000 4,000

Mortgage Payable 400,000 -

Common Stock 200,000 200,000

Retained Earnings 152,000 80,000

Total Liabilities & SHE 832,000 380,000

Answer the Owners question: You show that I earned $120,000 in 2020, but I have only $24,000 in the bank. I bought a building on a mortgage and paid cash dividend of $48,000, but where is my money?! Why I dont have enough cash to pay the bills this month?! could you answer this with the balance sheet help with proper calculation?