Year RIIUL Ital Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation $ 40, 380 41,200 44,800 132,000 (35,650) $ 38,300 31,000 39,700 108,000 (27,000) $222,730 $190,000 Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings $ 41,050 3,810 35,600 97,800 44,470 $ 28,900 4,200 49,600 74,600 32,700 $222,730 $190,000 Income Statement (Current year) Sales Cost of Goods Sold Other Expenses $141,000 81,780 47,450 Net Income $ 11,770 Additional Data: a. Bought equipment for cash, $24,000. b. Paid $14,000 on the long-term note payable. c. Issued new shares for $23,200 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $8,650; wages, $22,200; taxes, $9,300; other, $7,300. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating t or other expenses, assume that these expenses were fully paid in cash. For the Year Ended December 31 $ 11,770 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Increase in merchandise inventory Increase in accounts payable Increase in wages payable $ 8,650 8,650 20,420 Cash flows from investing activities: Cash payments on long-term note Cash receipts from issuing shares 0 Cash flows from financing activities: Cash payments to purchase equipment 24,000 24,000 Net increase in cash during the year Cash balance, January 1 Cash balance. December 31 $ 0