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 $ 704,000 377,000 327,000 151,300 175,700 6,000 181,700 72,680 $ 109,020 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Accounts receivable Year 2 Year 1 $ 101,120 227,000 $ 66,100 141,000 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 320,000 278,000 10,000 20,000 658,120 505,100 630,000 506,000 165,500 131,300 464,500 374,700 45,000 $ 1,167,620 $ 312,000 46,000 $ 879,800 $ 262,000 53,000 85,300 80,800 443,300 395,800 205,000 110,000 648,300 505,800 348,000 277,000 171,320 97,000 519,320 374,000 $ 879,800 Total stockholders' equity Total liabilities and stockholders' equity $ 1,167,620 Equipment that had cost $31,800 and on which there was accumulated depreciation of $11,800 was sold during Year 2 for $26,000. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.