Comparative Balance Sheet December 31, 2019 and 2020 Assets 2019 2020 Current assets: Cash S 2,000,000 800,000 Accounts receivable (net) 2,650,000 2,270,000 Inventory 2,200,000 2,130,000 Prepaid expense 500,000 400,000 Total current assets 7,350,000 $ 5,600,000 Long-term investments S 7,600,000 9,500,000 Property, plant and equipment (net) 5,100,000 7,250,000 Total assets 20,050,000 S 22,350,000 Liabilities Current liabilities Accounts payable S 3,200,000 S 3,000,000 Notes payable 660,000 900,000 Accrued liabilities 370,000 310,000 Total current liabilities 4,230,000 S 4,210,000 Long-term liabilities 1,000,000 650,000 Total liabilities 5,230,000 S 4,860,000 Stockholders' equity Common stock, $5 par value 900,000 S 2,300,000 Preferred Stock, 10%%, $10 par value 100,000 150,000 Retained earnings 13,820,000 15,040,000 Total stockholders equity S 14,820,000 S 17,490,000 Total liabilities and equity S 20,050,000 S 22,350,000Pacific Company Income Statement For the years ended December 31, 2020 2020 Sales ($30,000,000 are on account) 5 40,000,000 Cost of goods sold (23,000,000 Gross profit 17,000,000 Selling expenses (3,000,000) Administrative expenses 1200.000) Total operating expenses (3,200,000] Operating income 13,800,000 Interest expense (175,000) Tax expense (2.000,000) Net Income S 11,625,000