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 Income taxes Net income $ 707,000 168,000 539,000 151,900 387,100 8,000 395,100 158,040 $ 237,060 Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 207,860 225,000 318,000 $ 64,700 137,000 275,000 10,500 21,000 761,360 497,700 637,000 517,000 165,200 130,400 471,800 43,000 $ 1,276,160 $ 314,000 43,000 386,600 0 $ 884,300 $ 258,000 56,000 84,700 80,300 441,700 394,300 202,000 107,000 643,700 501,300 333,000 288,000 299,460 632,460 $ 1,276,160 95,000 383,000 $ 884,300