Joyner Company's income statement for Year 2 follows: $ 714,000 119,000 595,000 151,500 443,500 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income 9,000 452,500 135,750 $ 316,750 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 278,350 229,000 318,000 9,000 834,350 635,000 166,500 468,500 49,000 $1,351,850 $81,100 122,000 276,000 18,000 497,100 510,000 131,800 378,200 $ 875,300 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 312,000 46,000 85,200 443,200 191,000 634,200 340,000 377,650 717,650 $1,351,850 $265,000 58,000 81,300 404,300 103,000 507,300 273,000 95,000 368,000 $875,300 Equipment that had cost $30,800 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $28,500. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock