2. 

The following information is from Omar Corp balance sheets as of December 31, Years 2 and 1 and income statement for Year 2: 2 Assets: Cash $ 18,000 $ 22,000 Temporary investments 25,000 -0- Accounts receivable 38,000 42,000 Inventory 61,000 52,000 Prepaid insurance 6,000 9,000 Long-term investments 49,000 20,000 Equipment (net) 130,000 130,000 Land 33,000 33,000 Goodwill 55,000 55,000 Total assets $415,000 $363,000 Net income Sales (all on credit) $ 62,250 305,000 Cost of goods sold 123,000 Interest expense 15,600 Income tax expense 26,679Accounts payable 108,000 Accounts receivable 305,000 Accrued wages 1 5 ,500 Amortization expense 105,000 Capital Stock 200,000 Cash 15,000 Cost of sales 678 ,500 Current portion of mortgage payable 25,000 Dividends 30,000 Dividends payable 7 ,500 General, administrative and selling expenses 804,000 Income tax expense 135,000 Income taxes payable 34,000 Interest expense 65 ,000 Inventory 125,000 Mortgage payable (non- current portion) 550,000 Patents 200,000 Prepaid expenses 6,000 Property, plant and equipment 850,000 Sales for cash 250,000 Sales on credit 1,825,000 Retained earnings 303 ,500 (beginning of the year balance)