The income statement, balance sheet, and additional information for Video Phones, Inc., are provided.

VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2015
Net sales		$	3,386,000
Expenses:
Cost of goods sold	$ 2,200,000
Operating expenses	908,000
Depreciation expense	32,000
Loss on sale of land	8,500
Interest expense	17,500
Income tax expense	53,000
Total expenses			3,219,000
Net income		$	167,000

VIDEO PHONES, INC. Balance Sheet December 31
	2015		2014
Assets
Current assets:
Cash	$	270,300	$	185,900
Accounts receivable		86,500		65,000
Inventory		105,000		140,000
Prepaid rent		13,200		6,600
Long-term assets:
Investments		110,000		0
Land		215,000		250,000
Equipment		280,000		215,000
Accumulated depreciation		(75,000)		(43,000)
Total assets	$	1,005,000	$	819,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	70,500	$	86,000
Interest payable		6,500		11,000
Income tax payable		15,500		14,500
Long-term liabilities:
Notes payable		295,000		230,000
Stockholders' equity:
Common stock		350,000		350,000
Retained earnings		267,500		128,000
Total liabilities and stockholders