The financial statements for Castle Producis, Inc, are given below Assets Current assets Cash Accounts receivable, net S 20,000 210,000 350,000 9,000 Merchandise inventory Prepaid expenses 589,000 900,000 Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity $1,489,000 Liabilities Current liabilities Bonds payable, 9% $ 240,000 400,000 640,000 $ 180,000 Total liabilities Stockholders equity Common stock, $5 par value Retained earnings 669,000 849,000 $1,489,000 Total stockholders equity Total liabilities and stockholders equity Castile Products, Inc Income Statement For the Year Ended December 31 Sales Cost of goods sold $2.130.000 1.220,000 Gross margin Selling and administrative expenses 910,000 630,000 Net operating income Interest expense 280,000 36,000 Net income before taxes Income taxes (30%) Net income 244.000 73.200 S 170,800 Account balances at the beginning of the year were accounts receivable. $170.000, and inventory S320 000 All sales were on account. Assets at the beginning of the year totaled $1,020 000, and the stockholders equity totaled $655.000