PROBLEMS 14-1 to 14-4. HG Lang Designs operates an exclusive bridal boutique in Manhattan. All gowns are designed by Lang but are manufactured by various small firms in France and Italy. The following financial information for the company relates to Problems 14-1 through 14-4

HG Lang Designs December 31, December 31, Balance Sheets 2018 2017 Assets Current assets: Cash $ 65,000 $ 88,000 Accounts receivable 352,000 333,200 Inventory 1,795,000 1,764,000 Other current assets 62,000 65,000 Total current assets 2,274,000 2,250,200 Buildings, furniture, and fixtures, net 1,611,000 1,611,000 Total assets $3,885,000 $3,861,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 73,000 $ 65,200 Bank loan payable 89,000 110,000 Other accrued payables 13,000 11,000 Total current liabilities 175,000 186,200 Long-term debt 311,000 366,000 Total liabilities 486,000 552,200 Stockholders' equity: Common stock 1,248,000 1,248,000 Retained earnings 2,151,000 2,061,000 Total stockholders' equity 3,399,000 3,309,000 Total liabilities and stockholders' equity $3,885,000 $3,861,200HG Lang Designs Income Statements December 31, December 31, For the Years Ended 2018 2017 Net sales $20,632,000 $19,282,000 Cost of goods sold 14,442,000 12,533,000 Gross margin 6,190,000 6,749,000 Operating expenses: Selling expenses 640,000 578,000 General and administrative expenses 2,682,000 2,314,000 Total operating expenses 3,322,000 2,892,000 Operating income 2,868,000 3,857,000 Interest expense 29,000 38,000 Income before taxes 2,839,000 3,819,000 Income taxes 994,000 1,337,000 Net income $ 1,845,000 $ 2,482,000