The 2020 financial statements of Outdoor Waterworks Inc. follow Outdoor Waterworks Inc. Income Statement For Year Ended December 31, Net sales. Cost of goods sold: 1 Inventory, Dec. 31, 2019 Purchases Goods available for sale Inventory, Dec. 31, 2020 Cost of goods sold Gross profit from sales Operating expenses Operating profit Interest expense Profit before taxes Income taxes Profit 2020 $1,026,000 $ 78,360 606,840 $ 685,200 59,940 625,260 $ 400,740 279,360 $ 121,380 12,000 $ 109,380 19,164 $ 90,216 Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash $ 22,000 Current non-strategic investments - Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity 25,200 52,680 11,160 59,940 5,880 329,520 $507,180 $ 49,000 Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant Common shares, 160,000 shares Retained earnings Total liabilities and equity 6,360 7,140 115,800 195,000 133,800 $507,180 Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the December 31, 2019, balance sheet, the assets totalled $435,720, common shares were $195,000, and retained earnings were $109,440.