5 eBook Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $2,000,000 868,000 28,000 8,100 15,500 49,000 $3,086,000 2,968,600 $ 117,400 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: $ 182,860 82,100 $152,380 61,000 105,000 136,000 12,240 6,120 Investments Land 106,000 211,000 242,000 Equipment 272,000 211,000 Accumulated depreciation (70,200) (42,200) Total assets $ 901,000 $766,300 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 66,900 6,100 15,100 $ 82,000 10,200 14,100 287,000 226,000 310,000 310,000 215,900 124,000 Total liabilities and stockholders' equity $ 901,000 $766,300