Given data
  

Assets Cash Accounts receivable Merchandise inventory Notes receivable Equipment Accumulated depreciation-equipment Land Total assets Liabilities Accounts payable Salaries payable Utilities payable Interest payable Notes payable (long-term) Common stock Retained earnings Total liabilities and equity Sales revenue Cost of goods sold Gross margin Operating expenses Salaries expense Depreciation expense Utilities expense Year 2 $128, 187 51,930 128, 752 Income Statement For the Year Ended December 31, Year 2 Operating income Nonoperating items Interest expense Loss on the sale of equipment Net income 0 145, 700 (79,748) 85,500 $460, 321 $ 41, 464 29,575 548 0 0 303, 500 85,234 $460, 321 $ 587,350 (291,649) 295, 701 (188, 720) (18,628) (12,450) 75, 903 (2,982) (1,590) $71,331 Year 1 $ 26,890 60, 130 116, 490 30, 900 254, 800 (143, 650) 55,000 $ 400, 560 $ 47,980 23, 660 1,095 1,980 59,000 239, 700 27,145 $ 400, 560