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Sharon Feldman, president of Allied Company, considers $31,000 to be a minimum cash balance for operating purposes. As can be seen from the following statements, only $26,000 in cash was available at the end of 2011. Because the company reported a large net income for the year, and also issued bonds and sold some long-term investments, the sharp decline in cash is puzzling to Ms. Feldman.

Allied Company Comparative Balance Sheet December 31, 2011, and 2010
	2011			2010
Assets
Current assets:
Cash	$	26,000		$	46,200
Accounts Receivable		213,200			224,300
Inventory		259,900			202,600
Prepaid expenses		14,700			28,200
Total current assets		513,800			501,300
Long-term investments		123,000			175,000
Plant and equipment		882,000			761,000
Less accumulated depreciation		215,500			193,300
Net plant and equipment		666,500			567,700
Total assets	$	1,303,300		$	1,244,000
Liabilities and Stockholders' equity
Current liabilities:
Accounts payable	$	184,900		$	242,100
Accrued liabilities		9,100			17,200
Income taxes payable		50,800			44,500
Total current liabilities		244,800			303,800
Bonds Payable		233,000			122,000
Total liabilities		477,800			425,800
Stockholders

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