Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) $900 350 550 $232 190 12 434 116 Year 2021 2020 Change Cash $212 $200 $ 12 Accounts receivable 395 421 (26) Inventory 860 850 10 Accounts payable 210 234 (24) Salaries payable 180 188 (8) Interest payable 55 50 5 Income tax payable 90 104 (14) 4 40 80 40 40