The comparatve balance sheet ot Posner Company, tor 2010 and the preceding year ended December 31, 2009, appears below condensed torm Accounts receivable (net) Inventories Investments Equipment Accumulated depreciation-equipment Accounts payable Bonds payable, due 2010 Common stock, SIO par Paid-in capital in excess ot par- common stock Retained earnings The income statement tor the current year is as follows: Sales Cost ot merchandise sold Gross profit Operating expenses: Depreciation expense Other operating expenses Income trom operations Other n-.come (expense), net: Gain on sale ot investment Interest expense Income before income tax Income tax expense Net income 37,000 108,500 573,200 700 335,000 70,000 162 200 700 68,000 (6,000) 100,000 70,000 450,000 (176,000) 542 coo 43,800 100, coo 285,000 53 200 42 coo 700 340: coo 285, 700 gat 000 191,700 (2,000) 189,700 60, 700 29 ooo