Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Assets Current assets: Cash Year 2 Year 1 $225 $340 Accounts receivable, net 370 390 Inventory 340 310 Prepaid expenses 20 20 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: 955 1,060 1,210 1,340 $ 2,165 $2,400 Accounts payable $310 $340 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 400 430 Bonds payable 300 510 700 940 Total liabilities Stockholders' equity: Common stock, $2 par value Additional paid-in capital Retained earnings Total stockholders' equity 200 200 330 330 935 930 1.465 1.460 Total liabilities & stockholders' equity $ 2.165 $2,400 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $1.570 Cost of goods sold 1,000 570 Gross margin Selling and administrative expense 485 Net operating income Interest expense 85 20 Net income before taxes 65 Income taxes (30%) 20 Net income 545