2. value 1.75 points The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 6 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 21,000 240,000 380,000 6,000 Total current assets Property and equipment, net 647,000 820,000 Total assets $1,467,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 8%6 s 250,000 310,000 560,000 $ 110,000 Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings 797,000 907,000 $1,467,000 Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,170,000 1,170,000 Gross margin Selling and administrative expenses 1,000,000 600,000 Net operating income Interest expense 400,000 24,800