Problem 10-2 (Part Level Submission) The results of operations for the Garret Bug Spray Manufacturing Company for the fourth quarter of 2014 were as follows (in thousands): $560,000 313,600 246,400 Sales of bug spray Less variable cost of goods sold Contribution margin Less fixed bug removal costs Less fixed selling and administrative expenses Income before taxes Less taxes on income Net income $78,400 33,600 112,000 134,400 53,760 $80,640 Note: Garret uses the variable costing method. Thus, only variable costs are included in the cost of goods sold. Fixed costs are charged to expense in the period incurred The company's balance sheet as of the end of the fourth quarter of 2014 was as follows (in thousands): Assets: $26,960 280,000 Cash Accounts receivable Total current assets Fixtures and equipment Less accumulated depreciation 306,960 $125,000 0,000 80,000 45,000 $351,960 Total assets Liabilities and owners' equity: Accounts payable Retained earnings Common stock $50,176 194,684 107,100 $351,960 Total liabilities and owners' equity