Pooria Corp just completed another successful year, as indicated by the following income.

For the Year Ended

December 31, 2012

Sales revenue $1,250,000

Cost of goods sold 700,000

Gross profit $ 550,000

Operating expenses 150,000

Income before interest and taxes $ 400,000

Interest expense 25,000

Income before taxes $ 375,000

Income tax expense 150,000

Net income $ 225,000

Presented here are comparative balance sheets:

December 31

2012 2011

Cash 52,000 $ 90,000

Accounts receivable 180,000 130,000

Inventory 230,000 200,000

Prepayments 15,000 25,000

Total current assets $ 477,000 $ 445,000

Land $ 750,000 $ 600,000

Plant and equipment 700,000 500,000

Accumulated depreciation (250,000) (200,000)

Total long-term assets $1,200,000 $ 900,000

Total assets $1,677,000 $1,345,000

Accounts payable $ 130,000 $ 148,000

Other accrued liabilities 68,000 63,000

Income taxes payable 90,000 110,000

Total current liabilities $ 288,000 $ 321,000

Long-term bank loan payable $ 350,000 $ 300,000

Common stock $ 550,000 $ 400,000

Retained earnings 489,000 324,000

Total stockholders