Balance Sheets As of December 31 Accounts receivable Allowance for doubtful accounts Net accounts receivable Inventories, lower of cost or market Income Statement Year 3 Year 2 $372,000 $399,000 (19,950) (14,880) $379,050 $357,120 $479,500 $ 444,000 Net credit sales Net cash sales Net sales For the Years Ended December 31 Cost of goods sold Selling, general, and administrative expenses Other expenses otal operating expenses Required Year 3 $2,005,000 406,000 Year 2 $1,758,000 312,000 2,411,000 2,070,000 1,608,000 1,424,000 239,500 214,500 39,200 22,900 $1,886,700 $1,661,400