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 $1,700,000 808,000 22,000 7,500 12,500 43,000 $2,756,000 2,593,000 $ 163,000 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 Stockholders' equity: $172,900 75,500 $102,700 55,000 105,000 9,600 130,000 4,800 100,000 205,000 230,000 260,000 205,000 (63,000) (41,000) $865,000 $686,500 $ 61,500 5,500 $ 76,000 9,000 14,500 13,500 275,000 220,000 250,000 250,000 258,500 118,000 Total liabilities and stockholders' equity $865,000 $686,500 Common stock Retained earnings