Required information [The following information applies to the questions displayed below.) Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Income Statements For the years ended December 31 Net sales Cost of goods sold 2021 $10,300,000 Gross profit Expenses: Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income 2022 $11,800,000 7,700,000 6,400,000 4,100,000 3,900,000 1,700,000 1,650,000 200,000 50,000 520,000 2,470,000 $ 1,630,000 200,000 50,000 450,000 2,350,000 $ 1,550,000 THE ATHLETIC ATTIC Balance Sheets December 31 2022 Assets Current assets: Cash Accounts receivable Inventory Supplies Long-term assets: Equipment Loss: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 2021 2020 $ 235,000 $ 164,000 1,000,000 1,735,000 750,000 1,365,000 110,000 $ 224,000 770,000 1,035,000 85,000 140,000 1,500,000 1,500,000 1,500,000 (700,000) $3,910,000 (500,000) (300,000) $3,389,000 $3,314,000 $ 204,000 $ 135,000 5,000 50,000 0 45,000 $ 120,000 5,000 40,000 600,000 600,000 600,000 700,000 700,000 700,000 2,351,000 1,909,000 1,849,000 $3,910,000 $3,389,000 $3,314,000