The financial statements for Castile Products, Inc, are given below Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory 20,000 220,000 380,000 8,000 Prepaid expenses Total current assets Property and equipment, net 628,000 890,000 Total assets $1,518,000 Liabilities and Stockholders' Equity Liabilities S 220,000 Current liabilities Bonds payable, 12% 330,000 550,000 $ 190,000 Total liabilities Stockholders' equity Common stock, $10 par value Retained earnings 778,000 968,000 $1,518,000 Total stockholders' equity Total liabilities and equity stile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2.130.000 1,190,000 Gross margin Selling and administrative expenses 940,000 580,000 Net operating income Interest expense 360.000 39,600 Net income before taxes Income taxes (30%) 320.400 96,120 Net income S 224,280