Question 1 Using the accounting equation, calculate the missing numbers: ASSETS Year 1 Cash $ 26,000 $ Accounts Receivable 18,000 $ Inventory $ 25,000 $ Prepaid Expenses $ 3,500 $ TOTAL ASSETS $ 72,500 $ Year 2 Year 2 28,350 $ 29,400 15,500 $ 31,575 $ 30,525 3,000 3,250 78,425$ LABILITIES Accounts Payable Notes Payable TOTAL LIABILITIES $ $ $ 6 990 $ 17,250 $ 23,840$ 16,000 $ S 12,550 3,500 16,050 $ SHAREHOLDERS EQUITY Common Shares Retained Eaming TOTAL SHAREHOLDERS EQUITY TOTAL LIABIUTIES & SHAREHOLDERS EQUITY S $ $ 6,000 $ $ $ $ 6,000 $ 47,550 $ 53,550 $ $ 6,000 58,000 64,000 80,050 Year 1 Retained Earnings: Total Shareholders' Equity: Total Liabilities & Shareholders' Equity: Year 2 Notes Payable: Total Liabilities: 22,80 $ 16,050 SHAREHOLDERS EQUITY Common Shares Retained Eaming TOTAL SHAREHOLDERS EQUITY TOTAL LIABILITIES & SHAREHOLDERS EQUITY $ $ $ $ 6,000 $ $ $ $ 6,000 $ 47,550 $ 3,550 $ $ 6,000 58,000 64,000 80,050 Year 1 Retained Earnings: Total Shareholders' Equity: Total Liabilities & Shareholders' Equity: Year 2 Notes Payable: Total Liabilities: Total abilities & Shareholders' Equity: Year 3 Accounts Receivable: Total Assets