Castile Products, Incorporated 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 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Incorporated 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 $ 20,000 220,000 300,000 11,000 551,000 830,000 $ 1,381,000 $ 210,000 310,000 520,000 $ 190,000 671,000 861,000 $ 1,381,000 $ 4,180,000 1,202,500 2,977,500 560,000 2,417,500 31,000 2,386,500 715,950 $ 1,670,550