a) Gates Industries' balance sheet and income statement for the year ending December 31, 2014 are as follows: Balance Sheet ($ million) Cash $10.0 Accounts payable $15.0 Accounts receivable 15.0 Salaries, benefits, & payroll taxes payable 3.0 Inventories* 12.0 Long-term debt 15.0 Fixed assets (net) 30.0 Stockholders' equity 34.0 Total assets $67.0 Total liab. & stock. equity $67.0 Income Statement ($ million) Net sales (all credit) $125.0 Cost of sales 75.0 Selling, general, & admin. expenses 30.0 Other expenses 13.0 Earnings after tax $ 7.0 *Note: Average inventories also equal $12.0 million.