Mandrake Motorcycles Balance Sheets December 31, December 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 240,000 $ 425,000 Accounts receivable 185,000 200,000 Inventory 850,000 630,000 Other current assets 200,000 210,000 Total current assets 1,475,000 1,465,000 Property, plant, and equipment, net 1,075,000 1,175,000 Total assets $2,550,000 $2,640,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 260,000 $ 205,000 Short-term debt payable 370,000 320,000 Other current liabilities 285,000 280,000 Total current liabilities 915,000 805,000 Long-term debt 195,000 410,000 Total liabilities 1,110,000 1,21 5,000 Stockholders' equity: Common stock 1,325,000 1,325,000 Retained earnings 115,000 100,000 Total stockholders' equity 1,440,000 1,425,000 Total liabilities and stockholders' equity $2,550,000 $2,640,000 Mandrake Motorcycles Income Statements Year Ended Year Ended December 31, December 31, 2021 2020 Net sales $1,590,000 $1,690,000 Cost of goods sold 980,000 1,175,000 Gross margin 610,000 515,000 Operating expenses: Selling expenses 300,000 210,000 General and administrative expenses 210,000 200,000 Total operating expenses 510,000 410,000 Operating income 100,000 105,000 Interest expense 48,000 72,000 Income before taxes 52,000 33,000 Income taxes 10,400 6,600 Net income 95 41,600 $ 26,400