Income statement and balance sheet data for The Athletic Attic are provided below.

THE ATHLETIC ATTIC Income Statement For the year ended December 31
	2016	2015
Net sales	$9,400,000	$10,960,000
Cost of goods sold	5,800,000	7,160,000
Gross profit	3,600,000	3,800,000
Expenses:
Operating expenses	1,590,000	1,640,000
Depreciation expense	220,000	220,000
Interest expense	44,000	44,000
Income tax expense	390,000	448,000
Total expenses	2,244,000	2,352,000
Net income	$1,356,000	$1,448,000

THE ATHLETIC ATTIC Balance Sheet December 31
	2016	2015	2014
Assets
Current assets:
Cash	$ 212,000	$ 158,000	$ 229,000
Accounts receivable	764,000	744,000	994,000
Inventory	1,029,000	1,359,000	1,729,000
Supplies	79,000	104,000	134,000
Long-term assets:
Equipment	1,260,000	1,260,000	1,260,000
Less: Accumulated depreciation	(240,000)	(440,000)	(640,000)
Total assets	$3,104,000	$3,185,000	$3,706,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 96,600	$ 117,000	$ 186,600
Interest payable	4,400	0	4,400
Income tax payable	34,000	39,000	44,000
Long-term liabilities:
Notes payable	540,000	540,000	540,000
Stockholders' equity:
Common stock	640,000	640,000	640,000
Retained earnings	1,789,000	1,849,000	2,291,000
Total liabilities and stockholders? equity	$3,104,000	$3,185,000	$3,706,000

Find questions attached

Required: