Financial data for Redstone Company for last year appear below Redstone Company Statements of Financial Position Beginning Ending Balance Balance Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Balsam Company Land (undeveloped) $ 305,000 147,000 266,000 468,000 233,000 417,000 395,362 136,000 247,000 435,000 259,000 417,000 Total assets $1,836,000 $1,889,362 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity $ 226,000 821,000 789,000 204,000 821,000 864,362 Total liabilities and owners' equity $1,836,000 $1,889,362 Income statement Sales Less operating expenses S 2,040,000 1,540,200 499,800 Net operating income Less interest and taxes: Interest expense Tax expense $ 99,500 154,938 254,438 Net income S 245,362