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, 2013: Cash receipts: From customers $ 655,000 Interest on note 3,220 Loan from a local bank 120,000 Total cash receipts $ 778,220 Cash disbursements: Purchase of merchandise $ 386,000 Annual insurance payment 5,520 Payment of salaries 206,000 Dividends paid to shareholders 12,000 Annual rent payment 22,000 Total cash disbursements $ 631,520 Selected balance sheet information: 12/31/12 12/31/13 Cash $ 23,000 $ 169,700 Accounts receivable 60,000 88,000 Inventory 76,000 60,000 Prepaid insurance 2,100 ? Prepaid rent 10,600 ? Interest receivable 2,415 ? Note receivable 46,000 46,000 Equipment 80,000 80,000 Accumulated depreciationequipment (38,000 ) (46,000 ) Accounts payable (for merchandise) 108,000 118,000 Salaries payable 19,600 23,300 Note payable 0 120,000 Interest payable 0 ? Additional information: 1. On March 31, 2012, Zambrano lent a customer $46,000. Interest at 7% is payable annually on each March 31. Principal is due in 2016. 2. The annual insurance payment is made in advance on April 30. The policy period begins on May 1. 3. On October 31, 2013, Zambrano borrowed $120,000 from a local bank. Principal and interest at 6% are due on October 31, 2014. 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 2013 (ignore income taxes). 2. Determine the following balance sheet amounts on December 31, 2013: