Assets Current assets: Cash Castile Products, Incorporated Balance Sheet December 31 $ 24,000 Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 260,000 390,000 9,000 683,000 860,000 $ 1,543,000 $ 240,000 350,000 590,000 $ 190,000 763,000 953,000 $ 1,543,000 Sales Castile Products, Incorporated Income Statement For the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,140,000 1,210,000 930,000 610,000 320,000 38,500 281,500 84,450 $ 197,050