Pearl Inc., a greeting card company, had the following statements prepared as of December 3 PEARL INC COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $5,900$7,000 51,300 35,00017,800 60,200 4,000 153,400 129,000 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets 61,500 40,400 5,000 (35,100 ) 46,300 (25,100 ) 49,600 $312,400 $293,800 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stoclk Retained earnings $46,500 $40,200 6,000 4,000 10,000 68,700 100,000 100,000 30,000 34,900 4,100 8,100 7,900 60,200 30,000 55,600 Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity 30,000 55,600 30,000 34,900 $312,400 $293,800 PEARL INC INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 $338,750 176,400 162,350 119,600 42,750 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 2,000 9,500 33,250 6,650 $26,600 Additional information: 1. Dividends in the amount of $5,900 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 $19,900 and was 70% depreciated was sold during 2017. Purchase of Investments Net Cash Used by Investing Activities $ Cash Flows from Financing Activities Principal Payment on Short-term Loan Principal Payment on Long-term Loan Dividend Payments Net Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Period Cash at End of Period