Current Attempt in Progress Selected information from Carla Vista Ltd.'s statement of financial position and income statement is as follows: CARLA VISTA LTD. Statement of Financial Position (partial) December 31 2018 2017 Current assets Accounts receivable $7,700 $12,800 Inventory 5,400 4,700 Prepaid expenses 4,800 2,400 Current liabilities Accounts payable 3,800 2,400 Income tax payable 1,500 500 Accrued liabilities 2,800 1,100 Bank loan payable-current portion 6,000 9,000 CARLA VISTA LTD. Income Statement Year Ended December 31, 2018 Net sales $210,000 Cost of goods sold 110,000 Gross profit 100,000 Operating expenses 58,000 Income from operations 42,000 Interest expense 1,700 Income before income tax 40,300 Income tax expense 3,100 Net income $37,200 Additional information: 1. The bank loan was issued to finance the purchase of equipment. 2. Operating expenses included depreciation expense of $11,400 and a loss of $5,500 on the disposal of equipment. Adjustments to reconcile net income to Net cash provided (used) by operating activities Depreciation expense Loss on disposal of equipment Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Increase in income tax payable $ $