Net sales Expenses: VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2021 Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense Total expenses Net income $1,500,000 768,000 18,000 7,100 10,500 39,000 $2,516,000 2,342,600 $ 173,400 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 Income tax payable Long-term liabilities: Notes payable $145,460 71,100 $ 69,180 51,000 126,000 4,320 105,000 8,640 96,000 0 201,000 222,000 252,000 201,000 (58,200) (40,200) $821,000 $633,300 $ 57,900 5,100 14,100 $ 72,000 8,200 13,100 267,000 216,000 Stockholders' equity: Common stock 210,000 210,000 Retained earnings 266,900 114,000 Total liabilities and stockholders' equity $821.000 $633.300