Carston Company's comparative balance sheet and income statement for last year appear below: Carston Company Comparative Balance Sheet Ending Beginning Balance Balance Assets 56,000 26,000 Cash Accounts receivable 62,000 60.000 Inventory 65.000 49,000 Prepaid expenses 12,000 23.000 340,000 280,000 Long-term investments 460,000 Property, plant and equipment 530,000 Less accumulated depreciation 313,000 270,000 Total assets 752,000 $634,000 Liabilities and stockholders' equity: 62,000 47,000 Accounts payable Accrued liabilities 26.000 22,000 Income taxes payable 47,000 49,000 230,000 Bonds payable 184.000 Common stock 110,000 60.000 226,000 Retained earnings 323,000 Total liabilities and stockholders' equity 752,000 634,000 Income Statement $760,000 Sales Cost of goods sold 385,000 375,000 Gross margin Selling and administrative expenses 190.000 Net operating income 185.000 Income taxes 55.500 $129,500 Net income