* Last year, J&H Corp. reported a book value of $350,000 in current assets, of which 35% is cash, 37% is short-term investments, and the rest is accounts receivable and inventory The company reported $297,500 of current liabilities including accounts payable and accruals. Interestingly, the company had no notes payable outstanding, and there were no changes in the company's accounts payable during the year . The company, however, invested heavily in plant and equipment to support its operations. It reporteda book value of 560,000 for its long-term assets last year Income Statement For the Year Ended on December 31 Industry Average J&H Corp $51,250,000 41,000,000 2,050,000 43,050,000 $8,200,000 1,230,000 $6,970,000 2,788,000 $4,182,000 Net sales $41,000,000 32,800,000 1,640,000 34,440,000 $6,560,000 656,000 $5,904,000 2,361,600 $3,542,400 Operating costs, except depreciation and amortization Depreciation and amortization Total operating costs Operating income (or EBIT) Less: Interest expense Earnings before taxes (EBT) Less: Taxes (40%) Net income