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q3

Use the following data for the DQR Company to answer the question below. Note that the balance sheet accounts listed below are the only items on the company's balance sheet for each year and the income statement accounts are the only items on the company's income statement for each year. Year 1 Year 2 230 550 510 ? 1000 1100 300 320 300 550 2000 2250 Item Accounts payable Accounts receivable Accruals Capital surplus Cash Common stock Cost of goods sold Depreciation expense Interest expense Inventory Long-term debt Net fixed assets Notes payable 4,050 4600 230 350 200 190 3000 3250 1500 1650 2700 2500 750 580 430 320 430 Operating expense Retained earnings ? ? 840 Sales 5,210 6000 Taxes 130 140 In Year 1, net income was