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 Prepaid expenses Total current assets. Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 11% Total liabilities Stockholders' equity: Common stock, $10 par value 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 Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes $ 23,000 230,000 300,000 6,000 559,000 820,000 $1,379,000 $ 220,000 350,000 570,000 $ 140,000 669,000 809,000 $1,379,000 $3,040,000 1,302,000 1,738,000 610,000 1,128,000 38,500 1.089.500 Prev