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 $ 716,000 273,000 443,000 151,100 291,900 5,000 296,900 118,760 $178,140 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation $ 173,240 225,000 320,000 9,000 Year 1 $ 67,000 138,000 280,000 18,000 727,240 503,000 623,000 505,000 166,400 131,600 Net property, plant, and equipment 456,600 373,400 Loan to Bymans Company 44,000 0 Total assets $1,227,840 $876,400 Liabilities and Stockholders' Equity Accounts payable $317,000 $259.000 Accrued liabilities Income taxes payable 48,000 85,100 $9,000 80,400 Total current liabilities 450,100 398,400 Bonds payable 202,000 105,000 Total liabilities 652,100 503,400 Common stock Retained earnings 334,000 277,000 241,740 96,000