The financial statements for Castile Products, Inc., are given below Castile Products, Inc. Balance Sheet December 31 Assets Current assetS: Cash 18,000 160,000 400,000 6,000 584,000 840,000 $1,424,000 Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities 260, 000 370,000 630, 000 Bonds payable, 10 Total liabilities Stockholders' equity: Common stock, ?5 par value Retained earnings s 120,000 674,000 794, 000 Total liabilities and stockholders' equity $1,424,000 Total stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expense? Net operating income 2, 400,000 1,480,000 920,00 640,000 280,000