Required information (The following information applies to the questions displayed below] The following financial statements and information are available for Solomon Industries Inc. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Marketable securities (available for sale) Equipment Accumulated depreciation Land Total assets Liabilities and equity Liabilities Accounts payable (inventory) Notes payable-Long-term Bonds payable Year 3 Year 2 $ 162,400 105,300 188,100 $ 122,600 86,800 173,800 294,700 222,000 681,400 492,500 (307,700) (237,900) 82,000 1,206,200 118,400 978,200 38,400 $ 68,100 229,700 252,200 204,400 102,200 Total liabilities 472,500 422,500 Stockholders' equity Common stock, no par 242,200 202,400 Preferred stock, $50 par 112,400 102,400 Paid-in capital in excess of par-Preferred stock 36,400 30,400 Total paid-In capital 391,000 335,200 Retained earnings 380,700 288,500 Less: Treasury stock (38,000) Total stockholders' equity 733,700 (68,000) 555,700 Total liabilities and stockholders' equity $1,206,200 $ 978,200 Sales revenue Income Statement For the Year Ended December 31, Year 3 $1,051,900 (768,400) 283,500 $22,700 94,100 92,300 (209,100) 74,400 (14,600) Cost of goods sold Gross profit Operating expenses Supplies expense Salaries expense Depreciation expense Total operating expenses Operating income Nonoperating items Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipment Net income 34,200 19,200 $ 113,200