Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC ATTIC Income Statements For the years ended December 31 2019 2018 Net sales $12,780,000 $11,350,000 Cost of goods sold 8,330,000 7,100,000 Gross profit 4,450,000 4,250,000 Expenses: Operating expenses 1,770,000 1,720,000 Depreciation expense 200,000 200,000 Interest expense 57,000 57,000 Income tax expense 604,000 520,000 Total expenses 2,631,000 2,497,000 Net income $1,819,000 $1,753,000 THE ATHLETIC ATTIC Balance Sheets December 31 2019 2018 2017 Assets Current assets: Cash $ 242,000 $ 172,000 $ 238,000 Accounts receivable 1,007,000 757,000 777,000 Inventory 1,742,000 1,372,000 1,042,000 Supplies 147,000 117,000 92,000 Long-term assets: Equipment 1,780,000 1,780,000 1,780,000 Less: Accumulated depreciation (770,000) (570,000) (370,000) Total assets $4,148,000 $3,628,000 $3,559,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 224,300 $ 157,000 $ 147,300 Interest payable 5,700 0 5,700 Income tax payable 57,000 52,000 47,000 Long-term liabilities: Notes payable 670,000 670,000 670,000 Stockholders' equity: Common stock 770,000 770,000 770,000 Retained earnings 2,421,000 1,979,000 1,919,000 Total liabilities and stockholders’ equity $4,148,000 $3,628,000 $3,559,000 rev: 04_13_2018_QC_CS-124020