Portions of the financial statements for Hawkeye Company are provided below. Sales HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2024 Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): ($ in millions) Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income $ 850 325 525 $ 227 185 12 424 101 4 (35) 70 35 $ 35 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Year 2024 2023 Change Cash $ 242 $ 215 $ 27 Accounts receivable 390 411 (21) Inventory 890 865 25 Accounts payable 225 264 (39) Salaries payable 185 198 (13) Interest payable 65 55 10 Income tax payable 95 114 (19)