Financial data for Redstone Company for last year appear below Redstone Company Statements of Financial Position Ending Balance Balance Assets: Cash Accounts receivable $ 341,000 188,000 260,000 448,000 315,000 301,000 336,590 192,000 251,000 385,000 257,000 301,000 Plant and equipment (net) Investment in Balsam Company Land (undeveloped) Total assets $1,853,000 $1,722,590 Liabilities and owners' equity: Accounts payable Long-term debt Owners' equity $ 203,000 206,000 892,000 624,590 892,000 758,000 Total liabilities and owners' equity $1,853,000 $1,722,590 Redstone Company Income statement Sales Less operating expenses $ 2,350,000 2,103,250 246,750 Net operating income Less interest and taxes Interest expense $ 99,200 78,960 Tax expense 178,160 Net income S 68,590