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Nordstrand Company's net income last year was$36,000. Changes in selected balance sheet accounts for the year appear below:IncreasesDebit balances: (Decreases)Accounts receivable . . . . . . . . . . . . . . . . . . . . . $ (7,000)Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (5,000)Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . $ 3,000Credit balances:Accumulated depreciation . . . . . . . . . . . . . . . . $18,000Accounts payable . . . . . . . . . . . . . . . . . . . . . . $13,000Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . $ (9,000)Taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . $ 0Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000
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