1. Presented below are the income statement and balance sheet of Windsor, Inc:

Income Statement - 2020

Sales$100

Cost of goods sold40

Gross profit60

Operating expense9

Interest expense4

Taxes6

Loss on sale of investment1

Total expenses20

Net income40

Balance Sheet20202019

Cash$10$2

Accounts receivable1210

Inventory1420

Prepaid rent64

Investments610

Equipment2015

Accumulated depreciation(8)(6)

Total assets6055

Accounts Payable43

Taxes payable310

Bonds payable104

Common stock3028

Retained earnings1310

Total6055CONTINUED

Additional Information

1. Sold investment that cost $4 for $3.
2. Average shares of stock outstanding was $10.
3. Market price of a share of common stock was $20.