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 $711,000 86,000 625,000 150,700 474,300 9,000 483,300 193,320 $ 289,980 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 Year 2 Year 1 $ 259,480 223,000 318,000 10,500 $ 59,700 143,000 285,000 21,000 810,980 508,700 634,000 502,000 167,000 130,100 467,000 371,900 46,000 0 $ 880,600 $ 1,323,980 $318,000 46,000 85,800 449,800 191,000 CAD 00 $ 251,000 54,000 80,600 385,600 118,000 Eas can