The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet Assets Current assets: S 21,000 230,000 350,000 10,000 Cash Prepaid expenses Total current assets Property and equipment, net 811,000 850,000 Total assets $1,481,000 Liabilities and Stockholders' Equity Current liabilities Bonds payable, 1196 S 220,000 390,000 10,000 S 200,000 Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings 851,000 851,000 $1,481,000 Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,220,000 1,230,00 Gross margin Selling and administrative expenses 990,000 30,000 Net operating income Interest expense 360,000 42,900 Net income before taxes Income taxes (30%) 317,100 95, 130 Net income S 221,970