Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 220 360 330 20 930 1,180 $2,110 $ 330 380 300 20 1,030 1,300 $2,330 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: $ 300 50 40 390 290 680 Accounts payable Accrued liabilities Notes payable, short term $ 330 50 40 420 500 920 Total current liabilities Bonds payable Total liabilities Stockholders' equity: 200 330 900 1,430 $2,110 200 330 880 1.410 $2 par value Common stock, Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity $2,330 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $1,560 990 570 475 95 20 75 23 $52