The data below are for Julian Company and Standard Company. Standard Company is the best company in Julian's industry; all companies in the industry strive to do things the way that Standard does them. Cash Accounts Receivable Inventory Property, plant, and equipment Total assets Total Liabilities Total Equity Sales Cost of Goods Sold Wage Expense Research Expense Advertising Expense Net Income Julian Standard 500 3,250 5,000 15,000 3,000 19,500 12,000 40,000 20,500 77,750 13,000 37,000 7,500 40,750 20,000 130,000 (6,000) (39,000) (10,000) (65,000) (2,000) (13,000) (1,600) (6,000) 400 7,000 Which ONE of the following statements is TRUE regarding Julian's income statement? Remember, Standard Company represents the standard of