During 2014 the Nittany Lions Corporation added a new product line to its production and sales. They had the following adjusted trial balances for December 31, 2014 and 2013. The balance in retained earnings for each year is before closing entries. 2014 2013 Debit Credit Debit Credit Cash 43,716 42,090 Accounts Receivable 20,000 12,600 Inventory 30,500 19,245 Supplies 29,000 25,000 Prepaid Rent 5,000 5,000 Equipment 450,000 329,800 Accumulated Depreciation 55,500 34,000 Accounts Payable 15,850 6,795 Unearned Revenue 79,000 70,000 Income Taxes Payable 6,230 14,505 Lont-Term Note Payable 200,000 100,000 Contributed Capital 122,000 122,000 Retained Earnings (before closing) 52,466 41,900 Sales 490,000 434,000 Cost of Goods Sold 213,000 196,000 Salaries and Wage Expense 145,000 125,000 Rent Expense 12,050 12,050 Depreciation Expense 45,500 37,000 Other Operating Expenses 11,430 8,150 Interest Revenue 1,400 750 Interest Expense 10,500 5,520 Income Tax Expense 6,750 6,495 1,022,446 1,022,446 823,950 823,95.

1. Identify two balance sheet and two income statement accounts that changed significantly in 2014 from 2013. For each of the 4 changes you identified, discuss in 1-2 complete sentences what you believe might be the cause of the observed change.