Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017 BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $6,000 $7,000 51,000 Short-term debt investments (available-for-sale) 35,000 18,000 60,000 4,000 154,000 130,000 Cash Accounts receivable 62,000 40,000 5,000 Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets (35,000 (25,000) 50,000 $313,000 $295,000 46,000 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46,000 $40,000 6,000 4,000 10,000 69,000 100,000 100,000 30,000 36,000 $313,000 $295,000 4,000 8,000 8,000 60,000 30,000 57,000 BRECKER INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income $338,150 175,000 163,150 120,000 43,150 $11,400 2,000 9,400 33,750 6,750 $27,000