Castile Products, Inc. Balance Sheet December 31 Assets Current assets Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 19,000 200,000 360,000 6,000 Total current assets Property and equipment, net 585,000 830,000 Total assets $1,415,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 9% 270,000 390,000 660,000 $ 110,000 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings 645,000 755,000 $1,415,000 Total stockholders' equity Total liabilities and equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,160,000 1,220,000 Gross margin Selling and administrative expenses 940,000 620,000 Net operating income Interest expense 320,000 35,100 Net income before taxes Income taxes (30%) 284,900 85,470 Net income S 199,430