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 Year 2 Year 1 Current assets: Cash $ 195 $ 280 Total current assets. Accounts receivable, net Inventory Prepaid expenses Plant and equipment, net 310 330 280 250 20 20 805 880 1,030 1,100 Total assets $ 1,835 $ 1,980 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 250 $ 280 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 340 370 Bonds payable Total liabilities Stockholders' equity: Common stock, $2 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) 240 390 580 760 200 200 330 330 725 690 1,255 1,220 $ 1,835 $ 1,980 Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 1,440 900 540 425 115 30 85 26 $ 59