XS Supply Company is developing its annual financial statements at December $31.$ The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:

Current Year Previous Year

Balance Sheet at December $31$

Cash $ $34,000$ $ $29,000$

Accounts Receivable $35,00028,000$

Inventory $41,00038,000$

Equipment $121,000100,000$

Accumulated Depreciation$$Equipment $(30,000)(25,000)$

Total Assets $ $201,000$ $ $170,000$

Accounts Payable $ $36,000$ $ $27,000$

Salaries and Wages Payable $1,2001,400$

Notes Payable $($long$-$term$)38,00044,000$

Common Stock $88,60072,600$

Retained Earnings $37,20025,000$

Total Liabilities and Stockholders$$ Equity $ $201,000$ $ $170,000$

Income Statement

Service Revenue $ $120,000$

Cost of Goods Sold $70,000$

Other Expenses $37,800$

Net Income $ $12,200$

Additional Data:

Bought equipment for cash, $$21,000.$

Paid $$6,000$ on the long$-$term notes payable.

Issued new shares of stock for $$16,000$ cash.

No dividends were declared or paid.

Other expenses included depreciation, $$5,000$; salaries and wages, $$20,000$; taxes, $$6,000$; utilities, $$6,800.$

Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.