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2. 1.75 polnts The financial statements for Castile Products, Inc., are given below Castile Products, Inc Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses $ 21,000 240,000 380,000 6,000 647,000 820,000 Total current assets Property and equipment, net Total assets $1,467,000 Liabilities and Stockholders' Equity Liabilities: $ 250,000 Current liabilities Bonds payable, 896 310,000 560,000 $ 110,000 Total liabilities Stockholders' equity Common stock, $5 par value Retained earnings 797,000 907,000 $1,467,000 Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,170,000 1,170,000 Gross margin Selling and administrative expenses 1,000,000 600,000