20. (16 pts) Franklin Corporation Comparative Balance Sheets As of December 31, 2017 and 2016 partial 2016 2017 $59,000 $45,000 Accounts receivable 25,000 Short-term investments 17,000 68,000 53,000 Inventory 10,000 12,000 Prepaid rent 19,000 14,000 Prepaid insurance 15,000 Supplies 90,000 Equipment 22,000 Accumulated depreciation -buildings 34,000 28,500 19,000 Accounts payable 13,600 Income taxes payable 14,300 18,000 Salaries and wages payable 57,000 35,000 Long term notes payable 80,000 80,000 Bonds payable 4,100 3,400 Premium on bonds payable 70,000 70,000 Common stock Franklin Corporation Income Statement and Dividend Income For the Year Ended December 31, 2017 $850,000 Sales Revenue Cost of goods sold 340,000 Gross Margin Operating expenses $120,000 Selling expenses Administrative expenses 140,000 Depreciation/Amortization expense 25,000 285 Income from operations 55,000 other revenues/expenses Gain on sale of short-term investments 24,000 Dividend revenue 16,000 12 Interest expense Income before taxes 27,000 Income tax expense Net income 21,600 Dividends to common stockholders To retained earnings 18,400