1a. Use the following balance sheet and profit and loss statement for Associated Industries to pull the data and answer the questions below the financial statements: Associated Industries Balance Sheet Assets Current Assets Change 2016 2017 Cash Inventory Accounts Receivable Total Current Assets Plant, Property and Equipment Less: Accumulated Depreciation $40,500 $12,652 $54,000 $111,500 $132,750 $151,750 $227,250 $275,902 $45,000 $45,000 ($2,250) ($4,500) Total Plant, Property and Equipment $42,750 $40,500 Total Assets Liabilities and Owners' Equity $270,000 $316,402 Liabilities Current Liabilities Accounts Payable $40,500 $77,580 Total Current Liabilities $40,500 $77,580 Long-Term Liabilities Bank Loan Payable $135,000 $135,000 Total Long-Term Liabilities $135,000 $135,000 Total Liabilities $175,500 $212,580 Owners' Equity Owners' Investment $90,000 $90,000 $4,500 $13,822 Retained Earnings Total Owners' Equity Total Liabilities and Owners' Equity $94,500 $103,822 $270,000 $316,402 Associated Industries Profit and Loss Statement 2016 2017 Sales Activities Revenue Cost of Goods Sold $375,000 $386,250 $211,056 $217,388 Gross Profit $163,944 $168,862 Operating Expenses Selling Expenses Advertising $15,000 $20,000 Sales Staff Salary $75,000 $77,250 General and Administrative Rent $22,500 $22,500 Utilities $11,250 $11,588 Owners' Salary $15,750 $15,750 Accounting, Payroll and Legal $7,500 $7,725 Depreciation $2,250 $2,250 Operating Profit Interest Profit Before Taxes Income Taxes Net Profit $11,608 $9,322 $14,694 $11,800 so $0 $14,694 $11,800 $3,086 $2,478