The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc. Balance Sheet December 31 Assets Current assets s 24,000 Cash 230,000 unts receivable, net 380,000 Merchandise inventory 7,000 Prepaid expenses Total current assets 641.000 Property and equipment, net 900.000 $1,541,000 Total assets Liabilities and Stockholders' Equity Liabilities s 280,000 Current liabilities Bonds payable, 9% 310,000 590,000 Total liabilities Stockholders' equity: Common stock, S5 par value 200,000 Retained earnings 751,000 Total stockholders' equity 951,000 Total liabilities and stockholders' equity $1,541,000 Castile Products, Inc. Income Statement For the Year Ended December 31 $2,130,000 Sales Cost of goods sold 1,170,000 960,000 Gross margin 650.000 Selling and administrative expenses Net operating income 310,000 Interest expense 27,000 Net income before taxes 282, 100 ncome taxes (30% 84,630 197,470 Net income Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $350,000. All sales were on account. Assets at the beginning of the year totaled S1.020,000, and the stockholders' equity totaled S715,000