Tabor Company has just prepared the following comparative annual financial statements for the current year: TABOR COMPANY Comparative Income Statement For the Years Ended December 31 Sales revenue (one-half on credit) Cost of goods sold Gross profit Expenses (including $7,200 interest expense each year) Pretax income Income tax expense (30%) Net income Current Year Prior Year $257,400 $ 198,000 93,600 124,800 104,400 132,600 72,000 96,200 32,400 36,400 9,720 10,920 $ 22,680 $ 25,480 TABOR COMPANY Comparative Balance Sheet At December 31 Current Year Prior Year $ 51,100 61,000 28,200 103,000 $ 243,300 $ 43,400 2,600 $ 39,600 40,000 44,400 121,000 $ 245,000 $ 46,200 1,300 56,000 Assets Cash Accounts receivable Inventory Property & equipment (net) Total assets Liabilities Accounts payable Income taxes payable Note payable, long-term Stockholders' equity Capital stock ($5 par value) Retained earnings. Total liabilities and stockholders' equity 56,000 98,000 106,000 43,300 35,500 $243,300 $245,000