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 $ 701,000 117,000 584,000 150,300 433,700 7,000 440,700 132,210 $308,490 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 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 Year 2 Year 1 $ 241,590 253,000 319,000 $ 49,500 137,000 288,000 8,500 17,000 822,090 491,500 637,000 509,000 167,000 130,200 470,000 378,800 44,000 0 $1,336,090 $870,300 313,000 $253,000 42,000 51,000 85,600 80,300 440,600 384,300 194,000 109,000 634,600 493,300 334,000 288,000 367,490 89,000 701,490 377,000 $1,336,090 $870,300