The comparative financial statements prepared at December 31, 2014, for Pinnacle Plus showed the following summarized data: 2014 2013 Income Statement Sales Revenue* Cost of Goods Sold $119,000 $108,000 51,600 55,600 Gross Profit Operating Expenses Interest Expense 63,400 38,700 4,900 56,400 35,700 4,900 Income before Income Tax Expense Income lax Expense (30%) 19,800 5,940 15,800 4,740 Net Income $ 13,860 11,060 Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net $ 64,580 14,630 36,500 47,000 123,000 46,000 29,500 113,000 Total Assets $253,080 $221,130 Accounts Payable Income Taxes Payable $ 73,730 48,640 590 1,090 49,000 Note Payable, Long-Term 49,000 Total Liabilities Contributed Capital (9,450 shares) Retained Earningst 123,820 94,500 34,760 98,230 94,500 28,400 Total Liabilities and Shareholders' Equity $253,080 $221,130 One-half of all sales are on credit. During 2014, cash dividends amounting to $7,500 were declared and paid