Use the following Financial Statement Information to answer questions 16-22. MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31, 2009 ASSETS Cash $40.00 Accounts receivable 60,00 Inventory 90.00 New plant and equipment 220.00 Total Assets $410.00 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $60.00 Accrued expenses 40,00 Long-term debt 130,00 Common stock 80,00 Retained earnings 100.00 Total Liabilities and Shareholders' Equity $410.00 MEGAFRAME COMPUTER COMPANY Income Statement For the year 2009 Sales (all on credit) $700.000 Cost of goods sold 400.000 Gross Profit 300.000 Selling and administrative expense 100.000 Operating profit 200.000 Interest expense 40.000 Net income before taxes 160.000 Taxes (50%) 80.000 Net income $80.000