Joyner Companys income statement for Year 2 follows: Sales $ 715,000 Cost of goods sold 186,000 Gross margin 529,000 Selling and administrative expenses 216,000 Net operating income 313,000 Gain on sale of equipment 9,000 Income before taxes 322,000 Income taxes 128,800 Net income $ 193,200 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 148,200 $ 109,500 Accounts receivable 266,000 112,000 Inventory 319,000 273,000 Prepaid expenses 9,500 19,000 Total current assets 742,700 513,500 Property, plant, and equipment 639,000 509,000 Less accumulated depreciation 165,900 131,500 Net property, plant, and equipment 473,100 377,500 Loan to Hymans Company 43,000 0 Total assets $ 1,258,800 $ 891,000 Liabilities and Stockholders' Equity Accounts payable $ 318,000 $ 270,000 Accrued liabilities 46,000 56,000 Income taxes payable 84,900 81,000 Total current liabilities 448,900 407,000 Bonds payable 202,000 101,000 Total liabilities 650,900 508,000 Common stock 348,000 285,000 Retained earnings 259,900 98,000 Total stockholders' equity 607,900 383,000 Total liabilities and stockholders' equity $ 1,258,800 $ 891,000 Equipment that had cost $31,900 and on which there was accumulated depreciation of $10,500 was sold during Year 2 for $30,400. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.