Net sales $420, 000 $350, 000 other revenues 16,000 10,000 Total revenues 436,000 360, 000 Expenses Cost of goods sold 252,000 206,000 Selling expenses 42, 000 38, 000 General and administrative expenses 22,000 20,000 Interest expense 6,000 6,000 Income tax expense 42,000 36, 000 Total expenses 364,000 306, 000 Net income $ 72,000 $ 54, 000 Assets Current assets Cash $ 8, 000 $ 16,000 Marketable securities 2,000 2,000 Accounts receivable 70, 000 64,000 Inventories 200,000 192, 000 Prepaid expenses 6,000 4,000 Total current assets 286,000 278,000 Plant and equipment (net) 210,000 210,000 Intangibles 40,000 0 Total assets $536,000 $488,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable $ 80, 000 $108, 000 Other 34,000 30,000 Total current liabilities 114, 000 138, 000 Bonds payable 132, 000 134,000 Total liabilities 246,000 272,000 Stockholders' equity Common stock (100, 000 shares) 230,000 230,000 Retained earnings 60,000 (14, 000) Total stockholders' equity 290,000 216,000 Total liabilities and stockholders' equity $536,000 $488, 000