16 HW The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is as follows: Cash Accounts receivable (net) Inventories Investments Land Equipment Assets Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Dec. 31, 2016 Dec. 31, 2015 $297,970 $280,690 107,940 100,810 304,720 298,490 0 115,640 156,290 0 336,200 263,890 (78,710) (71,160) $1,124,410 $988,360 Accounts payable $203,520 $194,710 Accrued expenses payable 20,240 25,700 Dividends payable 11,240 8,900 Common stock, $10 pari 60,720 48,430 Paid-in capital: Excess of issue price over par-common stock 228,260 134,420 Retained earnings 600,430 576,200 Total liabilities and stockholders' equity $1,124,410 $988,360 The income statement for the year ended December 31, 20Y6, is as follows: Sales Cost of merchandise sold Gross profit $1,556,750 641,000 $915,750 Operating expenses: Depreciation expense $7,550 Other operating expenses 808,550 Total operating expenses 816,100 Operating income $99,650 Other expense: Loss on sale of investments Income before income tax Income tax expense (31,220) $68,430 21,900