Sawyer Corporation's balance sheet and income statement appear below: Sawyer Corporation Comparative Balance Sheet Ending Beginning Balance Balance Assets Cash and cash equivalents 40 35 Accounts receivable 31 45 Inventory 57 66 550 450 Property, plant and equipment Less accumulated depreciation 239 195 $439 $401 Total assets Liabilities and stockholders' equity: 45 56 Accounts payable Accrued liabilities 54 36 Income taxes payable 30 45 Bonds payable 30 45 Common stock 97 95 Retained earnings 172 135 $401 Total liabilities and stockholders' equity $439 Income Statement $665 Sales Cost of goods sold 411 254 Gross margin Selling and administrative expenses 181 Net operating income 73 Gain on sale of equipment 24 Income before taxes 97 37 Income taxes 60 Net income