HEADLAND INC.

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2017 AND 2016

12/31/17

12/31/16

Cash$6,000

$7,100

Accounts receivable62,600

51,100

Short-term debt investments (available-for-sale)35,400

18,100

Inventory39,700

59,600

Prepaid rent5,000

4,000

Equipment154,200

128,700

Accumulated depreciationequipment(35,300

)

(24,800

)

Copyrights45,500

49,800

Total assets$313,100

$293,600

Accounts payable$45,500

$39,800

Income taxes payable4,000

6,000

Salaries and wages payable7,900

3,900

Short-term loans payable8,000

9,900

Long-term loans payable60,600

69,500

Common stock, $10 par100,000

100,000

Contributed capital, common stock30,000

30,000

Retained earnings57,100

34,500

Total liabilities & stockholders' equity$313,100

$293,600

HEADLAND INC.

INCOME STATEMENT

FOR THE YEAR ENDING DECEMBER 31, 2017

Sales revenue$340,975

Cost of goods sold176,300

Gross profit164,675

Operating expenses119,600

Operating income45,075

Interest expense$11,300

Gain on sale of equipment2,100

9,200

Income before tax35,875

Income tax expense7,175

Net income$28,700

Additional information:

1.Dividends in the amount of $6,100were 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 $20,100and was 70% depreciated was sold during 2017.

statement of cashflows