XYZ Corporation has provided the following financial data: Balance Sheet December 31, Year 2 and Year1 Year 2 Year I Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets s 271,000$ 190,000 190,000 100,000 30,000 510,000 800,000 S 1.354.000 1,310,000 215,000 117,000 25,000 628,000 726,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock, $5 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity $ 198,000 58,000 102,000 358,000 140,000 498,000 170,000 60,000 90,000 320,000 140,000 460,000 500,000 80,000 270,000 850,000 $ 1,354.000 $ 1,310,000 500,000 80,000 276,000 856,000 Income Statement For the Year Ended December 31, Year 2 Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (35%) Net income $ 1,280,000 840,000 440,000 413,692 26,308 14,000 12,308 4.308 8,000 Dividends on common stock during Year 2 totaled $2,000. The market price of common stock at the end of Year 2 was $1.49 per share