Exercise 23-13 Sheridan Inc., a greeting card company, had the following statements prepared as of December 31, 2017 SHERIDAN INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets $6,000 61,700 34,900 39,700 4,900 155,500 $7,000 51,200 18,000 60,400 4,000 128,900 (35,100) (25,000) 50,400 $314,100 294,900 46,500 Accounts payable Income taxes payable Salis 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 $45,600 $39,800 6,000 4,000 9,900 68,600 100,000 100,000 30,000 36,600 $314,100 294,900 4,000 8,000 8,000 59,700 30,000 58,800 SHERIDAN INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 $339,375 175,000 164,375 119,400 44,975 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 $11,500 1,900 9,600 35,375 7,075 $28,300 Additional information 1. Dividends in the amount of $6,100 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2017