VIDEO PHONES, INC Income Statement For the Year Ended December 31, 2018 $3,136,000 Net sales Expenses Cost of goods sold Operating expenses Depreciation expense Loss on sale of land Interest expense Income tax expense $2,050,000 878,000 29,000 8,200 16,000 50,000 Total expenses 3,031,200 Net income 104,800 VIDEO PHONES, INC Balance Sheet December 31 2018 2017 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent 83,200 105,000 12,480 $179,720 160,760 62,000 137,000 6,240 Long-term assets Investments Land Equipment Accumulated depreciation 107,000 212,000 274,000 (71,400) 244,000 212,000 (42,400) Total assets $902,000 $ 779,600 Liabilities and Stockholders' Equity Current liabilities 83,000 10,400 14,200 67,800 $ Accounts payable Interest payable Income tax payable 6,200 15,200 289,000 320,000 Long-term liabilities Notes payable 227,000 Stockholders' equity: Common stock Retained earnings 320,000 125,000 203,800 Total liabilities and stockholders' equity $902,000 $ 779,600