Question A (10 Marks) The financial statements of Stewart Corporation appear below: STEWART CORPORATION Comparative Balance Sheets December 31,2017 -158 2018 2017 Assets Cash Short-term investments Accounts receivable (net) Inventory Property, plant and equipment (net) S 100,000 150,000 75,000 175,000 750,000 $1,000,000 S1,250,000 S 50,000 50,000 100,000 150,000 Total assets iabilities and stockholders' equit Accounts payable Short-term notes payable Bonds payable Common stock Retained earnings S 50,000 100,000 200,000 375,000 275,000 Total liabilities and stockholders' equityS1,000,000 S 75,000 225,000 400,000 375,000 175,000 $1,250.000 STEWART CORPORATION Income Statement For the Year Ended December 31, 2018 Net sales Cost of goods sold Gross profit Expenses $1,000,000 625,000 375,000 Operating expenses Interest expense $105,000 45,000 Total expenses Income before income taxes Income tax expense Net income 150,000 225,000 67,500