Joyner Company's income statement for Year 2 follows: Sales $709,000 Cost of goods sold 337,000 Gross margin 372,000 Selling and administrative expenses 150,900 Net operating income 221,100 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes Income taxes Net income 227,100 68,130 $158,970 Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 Year 2 Year 1 $ 139,270 226,000 $ 69,000 134,000 319,000 285,000 10,500 21,000 694,770 509,000 640,000 502,000 166,500 131,500 473,500 370,500 45,000 0 $1,213,270 $879,500 Check my work