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, 98 Total liabilities Stockholders equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 22,000 180,000 370,000 7,000 579,000 890,000 $1,469,000 270,000 310,000 580,000 $ 120,000 769,000 889,000 $1,469,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $2,975,000 Cost of goods sold 1,295,000 Gross margin 1,680,000 Selling and administrative expenses 610,000 Net operating income 1,070,000 Interest expense 27,900 Net nem hafnre 1 142 10 Mc Graw 2 of 6