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7. Item 7 Item 7 The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. Assets Liabilities and Equity Current assets: Current liabilities: Cash $ 73 Accounts payable $ 238 Accounts receivable (net) 180 Other current liabilities 73 Notes receivable 56 Total current liabilities 311 Inventory 201 Long-term liabilities 91 Prepaid expenses 25 Total liabilities 402 Total current assets 535 Shareholders' equity: Equipment (net) 259 Common stock 142 Retained earnings 250 Total shareholders' equity 392 Total assets $ 794 Total liabilities and equity $ 794 Working capital is:

14. On August 1, 2021, Rocket Retailers adopted a plan to discontinue its catalog sales division, which qualifies as a separate component of the business according to GAAP regarding discontinued operations. The disposal of the division was expected to be concluded by June 30, 2022. On January 31, 2022, Rocket's fiscal year-end, the following information relative to the discontinued division was accumulated: Operating loss Feb. 1, 2021Jan. 31, 2022 $ 134,000 Estimated operating losses, Feb. 1June 30, 2022 88,000 Impairment of division assets at Jan. 31, 2022 29,000 In its income statement for the year ended January 31, 2022, Rocket would report a before-tax loss on discontinued operations of:

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