Comparative balance sheets and the income statements for Cavett Company are presented below:

Cavett Company Comparative Balance Sheet Ending Balance Beginning Balance Assets Cash Accounts receivable Inventory Long-term investments Property, plant and equipment Less accumulated depreciation $ 80,980 S 48,000 47,000 69,000 333,000 380,000 378,000 330,000 59,000 36,500 85,000 70,000 Total assets $ 843,480 $815,000 Liabilities and stockholders' equity: Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ 53,300 S 58,000 39,000 38,000 48,000 307,500 288,000 391,780 344,000 27,600 30,800 32,500 Total liabilities and stockholders' equity $ 843,480 $815,000 Income Statement Sales Cost of goods sold $430,000 190,000 Gross margin Selling and administrative expenses 240,000 92,000 Net operating income Loss on sale of investment 148,000 6,700 Income before taxes Income taxes 141,300 56,520 Net income $ 84,780