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 $ 714,000 303,000 411,000 151,000 260,000 9,000 269,000 80,700 $ 188,300 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Accounts receivable Year 2 Year 1 $ 175,600 230,000 $ 66,100 148,000 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 320,000 288,000 10,500 21,000 736,100 523,100 636,000 505,000 166,500 130,200 469,500 374,800 47,000 0 $ 1,252,600 $314,000 44,000 $ 897,900 $ 263,000 58,000 80,900 401,900 84,500 442,500 207,000 120,000