The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year)....

Working notes: T - Accounts KORVER SUPPLY COMPANY Balance Sheet As on December 31, 2021 Assets Current Assets: Cash $194,800 Accounts Receivable $230,000 Inventory $210,000 Total Current Assets Opening balance Sales Accounts receivable $210,000 Cash $820,000 Closing balance $1,030,000 $800,000 $230,000 $1,030,000 $634,800 Opening balance Accounts payable Inventory $160,000 Cost of goods sold $510,000 Closing balance $670,000 $460,000 $210,000 $670,000 $103,000 $737,800 Cash Closing balance Property Plant and Equipment Furniture and Fixtures $320,000 Less: Accumulated depreciation -$217,000 Net Property, Plant and Equipment Total Assets Liabilities and Shareholders' Equity Current Liabilities: Accounts payable $150,000 Notes payable $170,000 Interest payable $5,100 Total current liabilities Accounts Payable $520,000 Opening balance $150,000 Inventory $670,000 $160,000 $510,000 $670,000 Closing balance Retained Earnings Opening balance $292,700 Net Income $292,700 $144,900 $147,800 $292,700 $325,100 Shareholders' Equity: Common stock Retained earnings Total Total Liabilities and Shareholders' Equity $120,000 $292,700 $412,700 $737,800 Opening balance Accounts Receivable Cash $105,000 Accounts payable $520,000 $800,000 Operating expense $180,000 Interest on notes $10,200 Closing balance $194,800 $905,000 $905,000 Income Statement Sales $820,000 Cist of goods sold $460,000 Gross profit $360,000 Operating expenses $180,000 Depreciation $22,000 Income before interest $158,000 Interest expenses $10,200 Net Income $147,800