Use the following information to answer the question: Balance Sheet Smithson Iron, Incorporated (Years ending December 31) 2011 2012 Cash 24,000 22,200 Accounts receivable 40,000 33,000 Inventory 52,200 83,100 Net plant and equipment 285,000 295,000 Total assets 401,200 433,300 Notes payable 16,000 13,000 Accounts payable 49,000 57,000 Accruals 6,000 5,000 Long-term debt 160,000 175,000 Common stock ($2.50 par) 25,000 27,000 Capital surplus 80,000 84,000 Retained earnings 65,200 72,300 Total Liab. & Equity 401,200 433,300Miscellaneous Income Statement Data:a. Sales (2011) = $832,400b. Sales (2012) = $923,400c. Net income (2011) = $42,300d. Net income (2012) = $47,800