The comparative balance sheet of Navaria Inc. for December 31, 2013 and 2012, is as follows: Cash Assets Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment Total assets Dec. 31, 2013 Dec. 31, 2012 $194,660 $184,220 71,600 65,690 201,800 194,040 0 75,500 103,440 0 220,540 173,650 (52,400) (46,800) $739,640 $646,300 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $1 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity $133,690 $127,320 13,440 16,800 7,300 5,800 39,500 30,380 150,300 87,900 395,410 378,100 $739,640 $646,300 The income statement for the year ended December 31, 20Y3, is as follows: Sales Cost of merchandise sold Gross profit Operating expenses: Depreciation expense $5,600 Other operating expenses 397,010 Total operating expenses Operating income Other income: Gain on sale of investments Income before income tax Income tax expense Net income $1,217,820 748,960 $ 468,860 402,610 $ 66,250 12,600 $ 78,850 31,540 $ 47,310