Entity B reported net income of $98,000 for the current year. Depreciation recorded on
buildings and equipment amounted to $30,000 for the year. Balances of needed current
asset and current liability accounts at the beginning and end of the year are as follows:
End of Year
Beginning of Year Change
Accounts receivable
95,000
64,000
31,000 inc
Inventory
41,000
44,000
Prepaid insurance
9,000
0
Accounts payable
15,500
17,000
Taxes payable
6,500
1,000
Also, a loss on the sale of land of $7,500 was reported.