value 1.75 points The financial statements for Castile Products, Inc., are given below Castile Products, Inc Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses s 22,000 250,000 380,000 11,000 Total current assets Property and equipment, net 663,000 880,000 Total assets $1,543,000 Liabilities and Stockholders' Equity Liabilities $ 290,000 Current fiabilities Bonds payable, 12% 390,000 680,000 $ 150,000 Total liabilities Stockholders' equity Common stock, $10 par value Retained earnings 713,000 863,000 $1,543,000 Total stockholders equity Total liabilities and equity Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold $2,800,000 1,540,000 Gross margin Selling and administrative expenses 1,260,000 570,000 Net operating income 690,000