The comparative financial statements for Prince Company are below: Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Year 2 Year 1 $208,000 $171,500 116,500 101,800 91,500 69,700 57,800 53,900 33,700 15,800 9,800 4,900 $ 23,900 $ 10,900 5,800 $ 7,900 14,900 18,900 41,800 34,900 47,700 $110,200 39,800 $101,500 Total assets Current liabilities (no interest) Long-term liabilities (12% interest) Common stock ($8 par value, 3,975 shares outstanding) Retained earnings Total liabilities and stockholders' equity $ 16,900 45,900 $ 17,900 45,900 31,800 31,800 15,600 5,900 $110,200 $101,500