2 Castile Products, Inc. Balance Sheet December 31 10 points Assets Current assets: Cash $ 6,5ee 35,800 78,886 3,580 115,880 185,800 $300,e00 Accounts receivable, net 0309:07 Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 18% s se,8e0 80,e0e 130,80e Print Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings 3e,800 149,890 170,800 Total stockholders' equity Total liabilities and stockholders' equity $380,800 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses89,58 Net operating income Interest expense Net income before taxes Income taxes (38x) Net income $420,00 292,580 127,580 38,000 8,808 3e,800 9,000 s 21,000 Account balances at the beginning of the year were: accounts receivable, $25,000: and inventory, $60,000. All sales were on account. Assets at the beginning of the year totaled $280,000, and the stockholders' equity totaled $161,600