Financial data for Redstone Company for last year appear below Redstone Company Statements of Financial Position Ending Beginning Balance Balance Assets 335,000 94,220 Cash 157,000 Accounts receivable 197,000 232,000 284,000 Inventory Plant and equipment (net) 448,000 468,000 Investment in Balsam Company 268,000 349,000 317,000 Land (undeveloped) 317,000 $1,757,000 $1,709,220 Total assets Liabilities and owners' equity Accounts payable 157,000 221,000 Long-term debt 812,000 812,000 Owners' equity 788,000 676,220 $1,757,000 $1,709,220 Total liabilities and owners' equity Redstone Company Income statement 2,400,000 Sales Less operating expenses 2,136,000 Net operating income 264,000 Less interest and taxes: 97,100 Interest expense 194,780 97,680 Tax expense Net income 69,220