Joe Roberts, a retired navy seal operator, started Special Ops Security which focuses on providing personal protection to high profile individuals. The company experienced the following events during its first year of operations, Year 1: Acquired $604,000 cash from the issuance of common stock. Special Ops Security incurred $125,000 of operating expenses on account during Year 1. The company made cash payments of $103,000 to reduce its accounts payable during Year 1