A comparative balance sheet for Alcorn Company containing data for the last two years is as follows:

Assets Current assets: Cash and cash equivalents ......... $ 71,000 Accounts receivable ............... 590,000 Inventory ....................... 608,000 Prepaid expenses ................ 10,000 Total current assets ................. 1,279,000 Property, plant, and equipment ........ 2,370,000 Less accumulated depreciation ...... 615,000 Net property, plant, and equipment ..... 1,755,000 Long-term investments .............. 00,000 Loans to subsidiaries ................ 120,000 Total assets ....................... $3,234,000 $ 50,000 61 0,000 420,000 5,000 1 85,000 1 300,000 560,000 1 40,000 1 30,000 70,000 $2,525,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable ................. Accrued liabilities ................. Income taxes payable ............. Total current liabilities ............... Bonds payable ..................... Total liabilities ..................... Stockholders\" equity: Common stock ................... Retained earnings ................ Total stockholders\" equity ............. Total liabilities and stockholders\" equity . . . $ 870,000 25,000 133,000 1,020,000 620,000 1,648,000 1,090,000 495,000 1,535,000 $3,234,000 $ 570,000 42,000 1 18,000 730,000 400,000 1 ,130,000 1 ,000,000 395,000 1 ,395,000 $2,525,000 Sales ............................. $3,000,000 Cost of goods sold .................. 1,860,000 Gross margin ....................... 1,140,000 Selling and administrative expenses ..... 930,000 Net operating income ................ 210,000 Nonoperating items: Gain on sale of investments ......... $60,000 Loss on sale of equipment .......... 20,000 40,000 Income before taxes ................. 250,000 Income taxes ....................... 80,000 Net income ........................ $ 170,000