Case related to questions 25 and 26 The balance of cookie factory BORGERS NV on January, 1, and December, 31, 2016 is as follows (amounts in ) Assets 31/12 Liabilities &Equity 1/31/12 800,000 900,000 Common stock 600,000 1,000.000 Retained earnings 200,000320,000 Notes payable 100,000200.000 Bonds payable 800,000800,000 0 500,000 200,000400,000 00,000 320,000 300,000400,000 1,700,000 2,420,000 Material plant assets Inventory - raw materials Accounts receivable Cash Accounts payable Total 1,700,000 2,420,000 Total Over 2016 the following income statement has been prepared (amounts in ) Sales revenues Cost of raw material Wage expense Other expenses Depreciation expenses Total expenses Operating profit Rent expenses Earnings before taxes Income taxes Net income 2,000,000 500,000 340,000 260,000 60,000 1,160,000 840,000 40,000 800,000 300,000 500,000