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, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 21,000 200,000 320,000 9,000 550,000 830,000 $1,380,000 $ 260,000 300,000 560,000 $ 160,000 660,000 820,000 $1,380,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $3,075,000 Cost of goods sold 1,428,000 Gross margin 1,647,000 Selling and administrative expenses 660,000 Net operating income 987,000 Interest expense 30,000 Net income before taxes 957,000 Income taxes (30%) 287,100 Net income $ 669,900