Incomplete financial statements for Pepper Industries follow:
  

The following additional information is available about the company:
All sales during the year were on account.
There was no change in the number of shares of common stock outstanding during the year.
The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year.
Selected balances at the beginning of the current year were:

Current assets: Cash Pepper Industries Balance Sheet March 31 Accounts receivable, net Inventory Total current assets Plant and equipment, net Total assets Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders equity: Common stock, $5 par value Retained earnings S ? ? ? ? ? $ 320,000 NI 2 ? ? ? 2 Total stockholders equity Total liabilities and stockholders equity S? 2. Pepper Industries Income Statement For the Year Ended March 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $4,200,000 ? ? ? ? 80,000 ? ? Accounts receivable Inventory Total assets $270,000 $360,000 $1,800,000