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, 11% Total liabilities Stockholders' equity: Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement $ 21,000 240,000 320,000 11,000 592,000 830,000 $ 1,422,000 $ 210,000 390,000 600,000 $ 190,000 632,000 822,000 $ 1,422,000 Sales For the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,270,000 1,170,000 1,100,000 630,000 470,000 42,900 427,100 128,130 $ 298,970