The condensed financial statements of Westward Corporation for 2009 and 2008 are presented below.

Westward Corporation Westward Corporation

Balance Sheet Income Statement

December 31, 2009 For the Year Ended December 31, 2009

Assets Revenues $2,000,000

Current assets Expenses

Cash and temporary Cost of goods sold 1,080,000

investments $ 30,000 Selling and administrative

Accounts receivable 70,000 expenses 495,000

Inventories 120,000 Interest expense 30,000

Total current assets 220,000 Total expenses 1,605,000

Property, plant, and Income before income taxes 395,000

equipment (net) 780,000 Income tax expense 140,000

Total assets $1,000,000 Net income $ 255,000

Liabilities and Stockholders' Equity

Current liabilities $ 80,000

Long-term liabilities 300,000

Common stockholders' equity 620,000

Total liabilities and

stockholders' equity $1,000,000

Westward Corporation Westward Corporation

Balance Sheet Income Statement

December 31, 2008 For the Year Ended December 31, 2008

Assets Revenues $2,500,000

Current assets Expenses

Cash and temporary Cost of goods sold 1,750,000

investments $ 40,000 Selling and administrative

Accounts receivable 90,000 expenses 500,000

Inventories 150,000 Interest expense 30,000

Total current assets 280,000 Total expenses 2,280,000

Property, plant, and Income before income taxes 220,000

equipment (net) 800,000 Income tax expense 77,000

Total assets $1,080,000 Net income $ 143,000

Liabilities and Stockholders' Equity

Current liabilities $ 140,000

Long-term liabilities 320,000

Common stockholders' equity 620,000

Total liabilities and

stockholders' equity $1,080,000

Select data from fiscal year 2007:

Inventory: $100,000

Total assets: $900,000

Stockholders