The financial statements of Zach Industries for the year ended December 31, 2012, follow Zach Industries Income Statement for the Year Ended December 31, 2012 Sales revenue Less: Cost of goods sold Gross profits $ 160,000 106,000 54,000 Less: Operating expenses Selling expense 16,000 General and administrative expenses 10,000 Lease expense 1,000 Depreciation expense 10,000 Total operating expense 37,000 Operating profits 17,000 Less: Interest expense 6,100 Net profits before taxes 10,900 Less: Taxes 4,360 Net profits after taxes 6.540 Zach Industries Balance Sheet December 31, 2012 Assets Cash $ 500 Marketable securities 1,000 Accounts receivable 25,000 Inventories 45,500 Total current assets 72.000 Land 26,000 Buildings and equipment 90,000 Less: Accumulated depreciation 38,000 Net fixed assets (include land) 78,000 Total assets $ 150,000 Liabilities and Stockholders' Equity Accounts payable $ 22,000 Notes payable 47,000 Total current liabilities 69,000 Long-term debt 22.950 Common stock 31.500 Retained earnings 26,550 Total liabilities and stockholders' equity S "The firm's 3,000 outstanding shares of common stock closed 2012 at a price 150,000 of $25 per share