Net sales Expenses: Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,550,000 778,000 19,000 7,200 11,000 40,000 $2,576,000 2,405,200 $ 170,800 VIDEO PHONES, INC. Balance Sheets December 31 2021 2020 Assets Current assets: Cash Accounts receivable. Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable $152,320 72,200 105,000 $ 77,560 52,000 127,000 4,440 8,880 97,000 0 202,000 224,000 254,000 202,000 (59,400) (40,400) $832,000 $ 58,800 5,200 14,200 $646,600 $ 73,000 8,400 Long-term liabilities: Income tax payable Notes payable 13,200 269,000 217,000 Stockholders' equity: Common stock 220,000 220,000 Retained earnings 264,800 115,000 Total liabilities and stockholders' equity $832,000 $646,600