The financial statements for Castile Products, Incorporated, are given below: Castile Products, Incorporated 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, 12% Total liabilities Stockholders' equity: Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement $ 22,000 210,000 330,000 11,000 573,000 850,000 $ 1,423,000 $ 280,000 330,000 610,000 $ 160,000 653,000 813,000 $ 1,423,000 Sales For the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,220,000 1,210,000 1,010,000 580,000 430,000 39,600 390,400 117,120 $ 273,280