Benson Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item Loss on sale of land Net income $107,180 59,575 47,605 (2,800) (4,075) 40, 730 (3,300) $ 37,430 Assets BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Cash Accounts receivable $ 12,492 40,286 Merchandise inventory Equipment less accumulated depreciation Nonoperating assets Total assets Liabilities Accounts payable Notes payable Stockholders' equity Common stock 36,200 90,328 9,000 $188,306 $ 9,617 71,000 78,000 Retained earnings 29,689 Total liabilities and stockholder's equity $188,306