The income statement for M2 Pizza Pie Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows:

Sales					$263,900
Cost of merchandise sold					91,060
Gross profit					$172,840
Operating expenses:
	Depreciation expense		$22,790
	Other operating expenses		68,440
		Total operating expenses			91,230
Income before income tax					$81,610
Income tax expense					23,610
Net income					$58,000

	End of Year		Beginning of Year
Accounts receivable (net)	$21,290		$18,520
Inventories	54,580		47,480
Prepaid expenses	8,580		9,440
Accounts payable (merchandise creditors)	40,020		37,140
Accrued expenses payable (operating expenses)	11,310		12,330
Income tax payable	2,150		2,150