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, 10% Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 6,580 35, eee 70,000 3,500 115, eee 185, eee $308, ege $ 50, eee se, eee 132, e8e 30, eee 140. eee 170, Bee $300, eee Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross vargin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (38%) Net income $420,00 292,589 127,580 89,5ee 38,888 8, see 38,888 9,880 $ 21, 9