[The following information applies to the questions displayed below.] Edman Company is a merchandiser that has provided the following balance sheet and income statement for this year. Beginning Balance Ending Balance Assets Cash 62,800 $ 150,000 Accounts receivable 160,000 180,000 Inventory 230,000 240,000 Property, plant & equipment (net) 833,000 793,000 Other assets. 37,000 37,000 Total assets $1,322,800 $1,400,000 Liabilities & Stockholders' Equity Accounts payable. Bonds payable Common stock Retained earnings Total liabilities & stockholders' equity 70,000 80,000 550,000 550,000 410,000 410,000 292,800 360,000 $1,322,800 $1,400,000 Sales Variable expenses: Cost of goods sold. Variable selling expense This Year $2,500,000 1,600,000 240,000 Total variable expenses 1,840,000 Contribution margin 660,000 Fixed expenses: Fixed selling expenses 220,000 Fixed administrative expenses 300,000 Total fixed expenses 520,000 Net operating income 140,000 Interest expense (8%) 44,000 Net income before tax Tax expense (30%) Net income 96,000 28,800 $ 67,200