Comparative financial statement data for Clear Lake Inc. follow:

$\backslash$table$[[$Cash$,$Year $2,$Year $1,],[$Accounts receivable,$$7,$$$,6],[$Inventory$,22,24,],[$Plant and equipment,$50,40,],[$Less: Accumulated depreciation,$240,200,],[$Total assets,$(65),(50),],[$Accounts payable,$$254,$$$220,],[$Common shares,$$40,$$$36,],[$Retained earnings,$150,145,],[$Total liabilities and stockholders' equity,$64,3\mathrm{.}39,]]$

For year $2,$ the company reported net income as follows:

$\backslash$table$[[,],[$Sales$,$$$275,$ cost of goods sold $150,$ gross margin $125,$ operating expenses $90,$ net income $$35$