You are internal auditor for Shannon Supplies, Inc., and are reviewing the company's preliminary financial statements. The statements prepared after making the adjusting entries, but before closing entries for the year ended December 31, 2018, are as follows: SHANNON SUPPLIES, INC Balance Sheet December 31, 2018 (s in 000s) Assets Cash Investments Accounts receivable, net Inventory Property, plant, and equipment Less: Accumulated depreciation $2,330 215 748 990 1,170 (630) Total assets $4,815 Liabilities and Shareholders Equity Accounts payable and accrued expenses Income tax payable Common stock, $1 par Additional paid-in capital Retained earnings $3,250 150 130 680 605 Total liabilities and shareholders equity $4,815 SHANNON SUPPLIES, INC. Income Statement For the Year Ended December 31, 2018 ($ in 800s) Sales revenue Operating expenses: 3, 260 Cost of goods sold Selling and administrative Depreciation $1,070 889 91 2,58 $1,210 (484) $ 726 Incone before income tax Income tax expense Net income