The income statement disclosed the following items for the year: Depreciation expense $44,900 Gain on disposal of equipment 26,220 Net income 301,300 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $7,000 Inventory (3,990) Prepaid insurance (1,490) Accounts payable (4,750) Income taxes payable 1,490 Dividends payable 1,050