You have completed the field work in connection with your audit of Alexander Corporation for the year ended December 31, 2012. The balance sheet accounts at the beginning and end of the year are shown below.

		Dec. 31, 2012		Dec. 31, 2011			Increase or (Decrease)
Cash		$320,975		$344,190			($23,215	)
Accounts receivable		542,185		407,715			134,470
Inventory		856,664		704,550			152,114
Prepaid expenses		13,860		9,240			4,620
Investment in subsidiary		127,628		0			127,628
Cash surrender value of life insurance		2,661		2,079			582
Machinery		239,085		219,450			19,635
Buildings		618,156		471,125			147,031
Land		60,638		60,638			0
Patents		79,695		73,920			5,775
Copyrights		46,200		57,750			(11,550	)
Bond discount and issue cost		5,200		0			5,200
		$2,912,947		$2,350,657			$562,290
Accrued taxes payable		$104,241		$91,939			$12,302
Accounts payable		345,668		323,400			22,268
Dividends payable		80,850		0			80,850
Bonds payable