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The income statement, balance sheets, and additional information for Video Phones, Inc., are provided. VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2018 Net sales 2,816,000 Expenses 1,750,000 Cost of goods sold 818,000 Operating expenses Depreciation expense 23,000 Loss on sale of land 7,600 Interest expense 13,000 Income tax expense 44,000 Total expenses 2,655,600 Net income 160,400 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets: Cash 179,760 111,080 Accounts receivable 76,600 56,000 Inventory 105,000 131,000 Prepaid rent 9,840 4,920 Long-term assets 101,000 Investments Land 206,000 232,000 262,000 206,000 Equipment Accumulated depreciation (64,200) 41,200) 699,800 Total assets 876,000 Liabilities and Stockholders' Equity Current liabilities: 62,400 77,000 Accounts payable Interest payable 5,600 9,200 Income tax payable 14,600 13,600 Long-term liabilities Notes payable 277,000 221,000 Stockholders' equity: Common stock 260,000 260,000 256,400 119,000 Retained earnings Total liabilities and stockholders' equity 876,000 699,800