The financial statements of ABC Company are given below: ABC Company Income Statement (2017) Sales $8,000,000 5,260,000 2,740,000 1,350,000 150,000 1,240,000 140,000 1,100,000 440,000 S660,000 Cost of goods sold Gross proft Selling and administrative expenses Depreciation Operating profit Interest expenses Income before tax Tax expense Net income Balance Sheet 2017 2016 Cash Accounts receivable Inventory Total current assets Fixed assets Total assets 200,000 $50,000 1,200,000 950,000 1,840,000 1,500,000 3,240,000 2,500,000 3,200,000 3,000,000 $6,440,000 $5,500,000 Accounts payable Bank loan Total current liabilities Bonds payable Total liabilities Common stock (130,000 shares) Retained earnings Total liabilities & equity 800,000 720,000 600,000 100,000 1,400,000 820,000 900,000 1,000,000 2,300,000 1,820,000 300,000 300,000 3,840,000 3,380,000 $6,440,000 $5,500,000 Note: The common shares are trading in the stock market for $40 each