Liabilities: and Owner's Equity 1997 1908 - Accounts payable S 200 $ 150 -Notes payable-current (9%) 0 150 Current liabilities S 200 5 300 Bonds (8 1/3% interest) 600 S 600 Owners' equity Common stock S 300 $ 300 Paid-in capital 600 600 C. Retained earnings 700 800 Total owners' equity $1.600 $1,700 Total liabilities and owners' equity $2.400 52.600 Pamplin, Inc, Income Statement for years ending 12/31/97 and 12/31/98 1997 1998 Sales (all credit) $1,200 $1,450 Cost of goods sold 700 850 Gross profit $ 500 $ 600 Operating expenses i 30 40 Depreciation 220 250 200 240 > Operating income S 250 $ 360 Interest expense 50 64 Net income before taxes $ 200 5 296 Taxes (40%) 118 Net income $ 120 5 178