Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities. Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 18,000 240,000 350,000 10,000 618,000 860,000 $1,478,000 $ 230,000 380,000 610,000 $ 170,000 698,000 868,000 $1,478,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $2,230,000 1,210,000 1,020,000 570,000 450,000 38,000 412,000 123,600 $ 288,400 Prev