Assets Cash Short-term investments Accounts receivable Inventory. Property, plant and equipment (net) Total assets Liabilities and stockholders' equity Accounts payable..... Short-term notes payable. Common stock. Long-term notes payable Retained earnings... Total liabilities and stockholders' equity. Net sales.. Cost of goods sold Gross profit Expenses Selling expenses Balance Sheet Income Statement For the Year Ended December 31, 2007 Administrative expenses Total expenses Income before Interest Expense and Taxes Interest Expense.. Income before income taxes Income tax expense...... Net income. December 31 2007 2006 $ 25,000 $ 40,000 15,000 60,000 50,000 30,000 50,000 70,000 160,000 200,000 $300.000 $400.000 $ 20,000 $ 30,000 40,000 90,000 80,000 160,000 60,000 45,000 100,000 75,000 $300.000 $400.000 $360,000 184,000 176,000 30,000 59,000 89,000 87,000 12,000 75,000 30,000 $ 45.000 Additional information: a. 120,000 shares were outstanding in 2007; 90,000 shares were outstanding in 2006 b. Market value of common stock on December 31, 2007, was $12 per share.