Metlock Inc. manufactures a variety of consumer products. The company's founders have run the company for 30 years and are now interested in retiring. Consequently, they are seeking a purchaser who will continue its operations, and a group of investors, Morgan Inc., is looking into the acquisition of Metlock. To evaluate its financial stability and operating efficiency, Metlock was requested to provide the latest financial statements and selected financial ratios. Summary information provided by Metlock is as follows. Metlock Inc. Income Statement For the Year Ended November 30, 2026 (in thousands) Sales (net) Interest income Total revenue $30,400 400 30,800 Costs and expenses Cost of goods sold 17,500 Selling and administrative expenses 3,450 Depreciation and amortization expense 1,790 Interest expense 800 Total costs and expenses 23,540 Income before taxes 7,260 Income taxes Net income 2.904 $4,356