Sales 675,000 Cost of goods sold 475,000 Gross profit on sales 41,000 Administrative expenses Operating income Interest expense 11,000 169,200 Income tax expense Net income Butterfly Company Balance Sheet At December 31, 2012 Cash Accounts payable 13,500 14,000 Note payable 9,500 Accounts receivable 48,000 Inventory 690,000 Equipment 975,000 Contributed capital Retained earnings 1,142,000 Total Total