Total current liabilities Bonds Payable 235,800 218,000 294,800 112,000 Total liabilities 453,800 406,800 Stockholders' equity: Common stock Retained earnings 610,000 198,000 630,000 157,200 Total stockholders' equity 808,000 787,200 Total liabilities and stockholders' equity $1,261,800 $1,194,000 Rivers Company Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold $920,000 575,000 Gross margin Selling and administrative expenses 345,000 246,100 98,900 Net operating income Non operating items $23,000 Gain on sale of investments Loss on sale of equipment (7,200) 15,800 Income before taxes Income taxes 114,700 34,380