the question and answer, both are in the pictures. however, i need an explanation of where the 7350 (highlighted in blue) in inventory came from. also, how do i know what information from the additional information do i include in the schedule and what information do i not include? please help:)

EVAAADI E EXAMPLE Step 1. Step 2. 2020 2019 Changes Categories Assets Current Assets: Cash Short term investments Accounts Receivable Inventory Prepaid Expenses Total Current Assets Equipment Less: Accumulated Depreciation Equipment, net Total Assets Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable Accrued Liabilities Total Current Liabilities Notes Payable Total Liabilities Shareholders' Equity: Common Shares Retained Earnings Total Liabilities and Shareholders' Equity EXAMPLE - Indirect Method