17 The balance sheet and income statement for isnet Corporation are as follows: Balance Sheet as of December 31, 2007 ASSETS Cash and marketable securities$100,000 Accounts receivable 700,000 Accounts payable Other current liabilities LIABILITIES AND EQUITY $200,000 85,000 Inventory 250,000 short-term borrowings 400,000 Total current assets $1,750,000 Total current liabilities $685,000 Net plant, property, and equipment $2,500,000 Long-term debt $1,300,000 $5,250,000 Total liabilities $1,985,000 Common stock at par $800,000 Additional paid-in capital $950,000 Retained earnings $515,000 TOTAL LIABILITIES AND EQUITY $4.250,000 Income Statement for the year ending December 31, 2007 Sales $6,500,000 Cost of goods sold 3.800,000 Gross profit $2,700,000 Selling general, and administrative expenses 1.200.000 Operating profit $1,500,000 Interest expense 800,000 Eamings before tax $700,000 Taxes 280,000 Net income $420,000 Janet's stock was selling for $10 a share at the end of 2007 and there were 1 million shares outstanding, snet paid dividends of 50.30 a share in 2007. Assume Other current abilities are operational Refer to the information above. Calculate the value of Isnet's Net Operating Assets. O $1,985,000 $4,150,000 $3,865,000 $4,250,000 $3,965,000