High River Computing Began Operations on January 1, 2013 Required

Essay

High River Computing began operations on January 1, 2013.The following information was taken from the financial statements prepared at the end of its first fiscal year, December 31, 2013. $$\begin{array} { l r } \text { Cash } & \$ 6,750 \\\text { Accounts receivable } & 126,000 \\\text { Inventory } & 459,000 \\\text { Prepaid expenses } & 4,450 \\\text { Accounts payable } & 118,600 \\\text { Short-term bank loan } & 50,000 \\\text { Sales } & 1,135,000 \\\text { Credit sales } & 800,450\end{array}$$ Required: