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Saved Help Sas 7 Sellers Construction Company purchased a compressor for $101,400 cash. It had an estimated useful life of four years and a $8.200 salvage value. At the beginning of the third year of use, the company spent an additional $8,080 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Assets Equity Rev. Exp. Net Inc. Book Value of Cash Flow Cash Compressor Com. Stk. Ret. Earn. 13, 770 54,800 23,480 45,170 NA NA NA NA ped Required Record the $8,080 expenditure in the statements model under each of the following independent assumptions: (In the Cash Flow column, use the initials "OA" for operating activities, "FA" for financing activities, and "A" for investing activity. Enter any decreases to account balances with a minus sign. Not all cells in the "Cash Flow" column may require an input leave cells blank It there is no corresponding input needed.) a. The expenditure was for routine maintenance b. The expenditure extended the compressor's life c. The expenditure improved the compressor's operating capacity Revenue Expenses - Not Income Cash Flow Assets Book Value of Compressor 13.770 54 000 Stockholders' Equity Common Retained Stock Earnings 23.400 - 45.170 + b C +

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