Financial information for Hanshew Company is presented below.

	HANSHEW COMPANY
	Balance Sheets
	December 31
	Assets	2013		2012
	Cash	$ 70,000		$ 65,000
	Short-term investments	52,000		40,000
	Receivable (net)	98,000		80,000
	Inventories	125,000		135,000
	Prepaid expenses	29,000		23,000
	Land	130,000		130,000
	Building and equipment (net)	180,000		175,000
		$684,000		$648,000
	Liabilities and Stockholders' Equity
	Notes payable	$100,000		$100,000
	Accounts payable	48,000		42,000
	Accrued liabilities	50,000		40,000
	Bonds payable, due 2014	150,000		150,000
	Common stock, $10 par	200,000		200,000
	Retained earnings	136,000		116,000
		$684,000		$648,000
	HANSHEW COMPANY
	Income Statement
	For the Years Ended December 31
		2013		2012
	Sales	$850,000		$790,000
	Cost of goods sold	620,000		575,000
	Gross profit	230,000		215,000
	Operating expenses	187,000		173,000
	Net income	$ 43,000		$ 42,000

Additional information:

Inventory at the beginning of 2012 was $118,000.

Receivables (net) at the beginning of 2012 were $88,000. The allowance for doubtful accounts was $4,000 at the end of 2013, $3,800 at the end of 2012, and $3,700 at the beginning of 2012.

Total assets at the beginning of 2012 were $630,000.

No common stock transactions occurred during 2012 or 2013.

All sales were on account.