Return Ratios and Leverage The following selected data are taken from the financial statements of Pine Corp.: Sales revenue Cost of goods sold Gross profit Selling and administrative expense Operating income $647,000 390,000 $257,000 100,000 $157,000 50,000 Interest expense Income before tax $107,000 Income tax expense (40%) 42,800 Net income $64,200 Accounts payable $45,000 Accrued liabilities Income taxes payable Interest payable Short-term loans payable 70,000 10,000 25,000 150,000 Total current liabilities $300,000 Long-term bonds payable $500,000 Preferred stock, 10%, $100 par $250,000 Common stock, no par 600,000 Retained earnings Total stockholders' equity 350,000 $1,200,000 Total liabilities and stockholders' equity $2,000,000