Hyrkas Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year 1 in thousands of dollars) Year 2 Year 1 Asset: Current assets: Cash Accounts receivable Inventory Prepaid expenses $ 130 $ 140 240 250 140 130 20 20 Total current assets Plant and equipment, net 530 917 540 897 Total assets $1,447 $1,437 Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued liabilities $ 190 S 180 80 80 Notes payable, short term 130 Total current liabilities Bonds payable 400 400 220 270 Total liabilities 620 670 Preferred stock, S 100 par value, 10% Common stock, $1 par value Additional paid-in capital--common stock Retained eamings 230 230 100 100 110 110 387320 Total stockholders equity Total liabilities and stockholders equity 827 760 S 1,447 $1,430 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) Cost of goods sold $1,450 871 Gross margin Selling and administrative expenses 579 327 Net operating income 252