Required information [The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 16 $ 11 Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation 292 229 153 195 9 5 470 440 509 430 (81) (70) Net property, plant, and equipment Long-term investments 428 360 27 34 Total assets $ 925 $ 834 Liabilities and Stockholders' Equity Accounts payable $ 300 $ 224 Accrued liabilities 70 78 Income taxes payable 74 64 Total current liabilities 444 366 Bonds payable 198 172 Total liabilities 642 538 Common stock 162 202 Retained earnings 121 94 Total stockholders' equity 283 296 Total liabilities and stockholders' equity $ 925 $ 834 Weaver Company Income Statement For This Year Ended December 31 Sales $ 752 Cost of goods sold 446 Gross margin 306 Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income 220 86 $ 5 (1) 4 90 23 $ 67