The income statement, balance sheets, and additional information for Vioja Tele Corporation are provided below: \begin{tabular}{|l|r||} \hline \multicolumn{2}{|c|}{ Vioja Tele Corporation } \\ \hline \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline \hline \multicolumn{2}{|c|}{ For the year ended December 31, 2022} \\ \hline Sales & $1,000,000 \\ \hline Cost of goods sold & 600,000 \\ \hline Gross Profit & 400,000 \\ \hline Selling \& Administrative expenses & 200,000 \\ \hline Operating Income & 200,000 \\ \hline Gain on sale of equipment & 7,200 \\ \hline Income before taxes & 207,200 \\ \hline Income Taxes Expense & 41,440 \\ \hline Net Income & $165,760 \\ \hline \hline \end{tabular} \begin{tabular}{|l|r|r||} \hline \multicolumn{3}{|c|}{ Vioja Tele Corporation } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ As at December 31} \\ \hline \hline & 2022 & 2021 \\ \hline \hline Current assets & & \\ \hline Cash & $161,460 & $75,000 \\ \hline Accounts Receivable & 320,000 & 120,000 \\ \hline Merchandise Inventory & 168,000 & 158,000 \\ \hline Prepaid expenses & 6,400 & 5,800 \\ \hline Total current assets & 655,860 & 358,800 \\ \hline Equipment & 720,000 & 740,000 \\ \hline Accumulated depreciation - Equipment & (231,800) & (186,000) \\ \hline Total Assets & $,144,060 & $912,800 \\ \hline Current Liabilities & & \\ \hline Accounts Payable & $89,000 & $113,000 \\ \hline \hline Wacaes Pavable & 4.400 & 2.000 \\ \hline \end{tabular} Prev 25 of 27 Next > 1. Included in the selling and administrative expenses is depreciation expense of $70,000 2. A new short term note payable of $20,000 was issued for cash 3. New equipment with a cost of $120,000 was purchased by paying $40,000 cash and issuing a long-term note payable for the balance. ADJUSTMENTS TO RECONCILE NET INCOME: Prev 25 of 27 Next >