Comparative Balance Sheets, December 31 Year 2 Year 1 Cash $200 $ 500 Accounts 2,200 4,000 receivable Prepaid rent 3,000 1,000 Inventory 8,000 5,000 Land 19,000 13,000 Total assets $32,400 $23,500 Accounts payable $12.000 $ 6,500 Note payable 7.000 10.000 Common stock 6,400 1,500 Retained 7,000 5,500 earnings Total stk. $32.400 $23,500 equity Income Statement for Year 2 Sales revenue $ 20.000 Cost of goods sold (15.200) Gross margin 14.800 Bent expens (1.000)