Balance sheet

Cash $$200,000$

Accounts receivable $1,722,000$

Raw materials inventory $492,500$

Finished goods inventory $1,627,700$

Equipment $3,000,000$

Less: Accumulated depreciation $750,0002,250,000$

Total assets $$6,292,200$

Liabilities and Equity

Liabilities

Accounts payable $$1,005,000$

Loan payable $12,000$

Long$-$term note payable $2,500,0003,517,000$

Equity

Common stock $1,675,000$

Retained earnings $1,100,2002,775,200$

Total liabilities and equity $$6,292,200$

To complete what is posted in the picture:

E$.$ The predetermined variable overhead rate is $$2\mathrm{.}70$ per direct labor hour. Depreciation of $$100,000$ per month is the only fixed factory overhead item.