Cadarette Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars) Assets Current assets: Cash Accounts receivable. Inventory. Prepaid expenses. Total current assets.. Plant and equipment, net Total assets Liabilities and Stockholders' Equity Year 2 Year 1 $ 40 $ 100 120 130 180 170 20 20 360 420 940 860 $1,300 $1.280 Current liabilities: Accounts payable. $ 170 $ 160 Accrued liabilities 80 80 Notes payable, short term. 40 40 Total current liabilities. 290 280 Bonds payable 110 150 Total liabilities 400 430 Stockholders' equity: Preferred stock, $100 par value, 10%............... 100 100 Common stock, $1 par value 100 100 Additional paid-in capital-common stock....... 200 200 Retained earnings 500 450 Total stockholders' equity 900 850 Total liabilities & stockholders' equity $1.300 $1.280