Condensed financial data of Needles Corporation appear below: NEEDLES CORPORATION Comparative Statements of Financial Position As at December 31, 2013 2013 2012 Assets Cash $74,700 $35,000 Accounts receivable 90,000 53,000 Merchandise inventory 120,000 132,000 Prepaid expenses 21,000 25,000 Long-term investments 90,000 75,000 Property, plant, and equipment 310,000 250,000 Accumulated depreciation Total Liabilities and Shareholders' -65,000 -60,000 $640.700 $510,000 Equity Accounts payable $93,000 $75,000 Accrued expenses payable 29,000 24,000 Bonds payable 135,000 160,000 Common shares 240,000 170,000 Retained earnings 143.700 81.000 Total $640.700 $510,000 NEEDLES CORPORATION Income Statement Year Ended December 31, 2013 Sales $500,000 Expenses: Cost of goods sold $295,000 Operating expenses 65,000 Depreciation expense 17,000 Interest expense 18,000 Loss on sale of equipment 3.000 398,000 Profit before income tax 102,000 Income tax expense 15.300 Profit $86,700