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 $ 708,000 50,000 658,000 150,100 507,900 8,000 515,900 154,770 $ 361,130 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 Year 2 $ 357,330 227,000 Year 1 $ 66,800 144,000 288,000 319,000 8,500 17,000 911,830 515,800 623,000 501,000 165,300 130,200 457,700 370,800 43,000 e $1,412,530 $ 886,600 $ 316,000 44,000 $260,000 56,000 85,700 80,600 445,700 396,600 205,000 114,000 650,700 510,600