December 31, 201X Assets Current assets: Cash ..... $ 70,000 Marketable securities . ... 40,000 Accounts receivable (net) . . .. 250,000 Inventory ...... 200,000 Total current assets $ 560,000 Investments ......... 100,000 Net plant and equipment . ... 440,000 Total assets ....... . ... $1, 100,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 130,000 Notes payable 120,000 Accrued taxes .... 30,000 Total current liabilities .... $ 280,000 Long-term liabilities: Bonds payable 200,000 Total liabilities .. $ 480,000 Stockholders' equity Preferred stock, $100 par value 150,000 Common stock, $5 par value ............ 50,000 Capital paid in excess of par 200,000 Retained earnings ...... 220,000 Total stockholders' equity ...... 620,000 Total liabilities and stockholders' equity $1, 100,000 GILLIAM CORPORATION Income Statement For the Year Ending December 31, 201X Sales (on credit) $2,400,000 Less: Cost of goods sold 1,600,000 Gross profit ....... 800,000 Less: Selling and administrative expenses 560,000* Operating profit (EBIT) ..... 240,000 Less: Interest expense ......... 30,000 Earnings before taxes (EBT) . 210,000 Less: Taxes .. 75,000 Earnings after taxes (EAT) .... $ 135,000