Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the companys accountant obtains the necessary information to prepare accrual basis financial statements. The following cash flows occurred during the year ended December 31, 2018:

Cash receipts:
From customers	$	630,000
Interest on note		3,280
Loan from a local bank		80,000
Total cash receipts	$	713,280
Cash disbursements:
Purchase of merchandise	$	381,000
Annual insurance payment		4,920
Payment of salaries and wages		201,000
Dividends paid to shareholders		11,000
Annual rent payment		19,500
Total cash disbursements	$	617,420

Selected balance sheet information:

	12/31/17			12/31/18
Cash	$	20,500		$	116,360
Accounts receivable		57,500			83,000
Inventory		71,000			57,500
Prepaid insurance		1,600			?
Prepaid rent		10,100			?
Interest receivable		2,460			?
Note receivable		41,000			41,000
Equipment		55,000			55,000
Accumulated depreciationequipment		(35,500	)		(41,000	)
Accounts payable (for merchandise)		105,500			113,000
Salaries and wages payable		19,100			22,300
Notes payable		0			80,000
Interest payable		0			?

Additional information:

1. On March 31, 2017, Zambrano lent a customer $41,000. Interest at 8% is payable annually on each March 31. Principal is due in 2021.
2. The annual insurance payment is paid in advance on April 30. The policy period begins on May 1.
3. On October 31, 2018, Zambrano borrowed $80,000 from a local bank. Principal and interest at 6% are due on October 31, 2019.
4. Annual rent on the companys facilities is paid in advance on June 30. The rental period begins on July 1.

Required:

1. Prepare an accrual basis income statement for 2018 (ignore income taxes). (Other expenses should be indicated with a minus sign.) 2. Determine the following balance sheet amounts on December 31, 2018: