Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes $ 719,000 97,000 622,000 150,700 471,300 5,000 476,300 190,520 $ 285,780 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Income taxes Net income Year 2 Year 1 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 pavable $ 259,780 229,000 320,000 $ 80,400 138,000 275,000 8,500 17,000 817,280 510,400 629,000 514,000 165,800 131,300 463,200 382,700 42,000 0 $ 1,322,480 $ 310,000 41,000 $ 893,100 $ 260,000 59,000 80,100 399,100 84,900 435,900 192.000 113.000