The income statement for Piura Merchandising Corporation is as follows: Piura Merchandising Corporation Income Statement For the Year Ended December 31, 20X1 Sales $ 1,500,000 Cost of goods sold Beginning inventory $ 400,000 Purchases 800,000 Ending inventory (200,000) (1,000,000) Depreciation expense (100,000) Amortization of patent (20,000) Wages expense (80,000) Insurance expense (40,000) Income before taxes $ 260,000 Income taxes (all current) (104,000) Net income $ 156,000 Other information is as follows: A. Accounts payable decreased by $20,000 during the year. B. Accounts receivable increased by $20,000. C. All wages were paid at the beginning of the year; at the end of the year, wages payable had a balance of $12,000. D. Prepaid insurance increased by $24,000 during the year.