Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash 5 23,000 Accounts receivable, net 220,000 HErcbandise inventory 360,000 Prepaid expenses 9,000 Total current assets 612,000 Property and equipment, net 090,000 Total assets $1,502,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities 5 200,000 Bonds payable, 9% 360,000 Total liabilities 560,000 Stockholders' equity: Common stock, 55 per value 5 130,000 Retained earnings 012,000 Total stoclu.':bolders'r equity 042,000 Total liabilities and stockholders'r equity $1,502,000 F Castile Products, Inc. Income Statement For the Year Ended December 31 Sales 52,200,000 Cost of goods sold 1,160,000 Gross margin 1,040,000 Selling and administrative expenses 590,000 Est operating income 450,000 Interest expense 32,400 Est income before taxes 41?,600 Income taxes {30%} 125,200 Est income 5 202,320