The financial statements for Castile Products, Incorporated, are given below. Castile Products, Incorporated Balance Sheet Assets Current assets: Cash December 31 $ 24,000 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, 9% Total liabilities Stockholders' equity: Common stock, $5 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Castile Products, Incorporated Income Statement 250,000 320,000 9,000 603,000 840,000 $ 1,443,000 $ 220,000 400,000 620,000 $ 140,000 683,000 823,000 $ 1,443,000 For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 2,290,000 1,220,000 1,070,000 650,000 420,000 36,000 384,000 115,200 $ 268,800