he comparative balance sheets and income statements for Gypsy Company follow. Balance Sheets As of December 31 2017 2016 Assets Cash $ 23,300 $ 2,624 Accounts receivable 1,948 1,169 Inventory 6,192 5,805 Equipment 19,457 42,997 Accumulated depreciationequipment (8,216 ) (17,923 ) Land 17,196 9,786 Total assets $ 59,877 $ 44,458 Liabilities and equity Accounts payable (inventory) $ 2,759 $ 4,457 Long-term debt 2,818 6,442 Common stock 22,300 10,500 Retained earnings 32,000 23,059 Total liabilities and equity $ 59,877 $ 44,458 Income Statement For the Year Ended December 31, 2017 Sales revenue $ 33,730 Cost of goods sold (13,369 ) Gross margin 20,361 Depreciation expense (3,089 ) Operating income 17,272 Gain on sale of equipment 700 Loss on disposal of land (90 ) Net income $ 17,882 Additional Data 1. During 2017, the company sold equipment for $18,504; it had originally cost $30,600. Accumulated depreciation on this equipment was $12,796 at the time of the sale. Also, the company purchased equipment for $7,060 cash. 2. The company sold land that had cost $4,390. This land was sold for $4,300, resulting in the recognition of a $90 loss. Also, common stock was issued in exchange for title to land that was valued at $11,800 at the time of exchange. 3. Paid dividends of $8,941.