The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets Cash $ 24,000 230,000 340,000 7,000 Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets 601,000 870,000 Property and equipment, net Total assets Liabilities and Stockholders' Equity $1,471,000 Liabilities Current liabilities $ 250,000 Bonds payable, 10% otal liabilities Common stock, $5 par value 330,000 580,000 $190,000 Stockholders' equity: 701,000 891,000 $1,471,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,160,000 1,160,000 Gross margin Selling and administrative expenses 1,000,000 590,000 Net operating income Interest expense 410,000 33,000 Net income before taxes Income taxes (30%) 377,000 113,100 Net income $ 263,900