Penguins Company had the following statements prepared as of December 31, 2021.

Penguins Skate Rink Company Comparative Balance Sheet As of December 2021
	2021	2020
Cash	$2,500	$4,000
Accounts receivable	123,000	104,000
Allowance for Doubtful accounts	(10,000)	(7,000)
Short-term investments (Available-for-sale)	99,000	121,000
Inventories	91,000	54,000
Prepaid insurance	4,000	6,000
Ski equipment	89,000	43,000
Accumulated depreciationequipment	(23,500)	(18,000)
Franchise	79,000	83,000
Total assets	$454,000	$390,000
Accounts payable	92,200	75,000
Income taxes payable	21,800	15,700
Salaries & wages payable	4,000	9,000
Short-term non-trade notes payable	23,500	0
Bonds payable	75,000	125,000
Discount on bonds payable	(7,000)	(20,000)
Common stock, $1 par	100,000	100,000
Additional paid-in capital	40,000	40,000
Retained earnings	104,500	45,300
Total liabilities & equity	$454,000	$390,000

Penguins Skate Rink Company
Income Statement
For The Year Ending December 31, 2021
Sales		$540,200
Cost of goods sold		302,000
Gross margin		$238,200
Operating expenses		94,000
Operating income		$144,200
Interest expense	20,500
Loss on sale of equipment	4,000	24,500
Income before income tax		$119,700
Income tax expense		40,500
Net income		$79,200

Additional information:

1. Depreciation expense, amortization expense and bad debt expense are included in operating expenses.

2. Equipment that had a cost of $25,000 and was 20% depreciated was sold during 2021.

Use the information above to determine the following