Presented below are the financial statements of Cheyenne Company Comparative Balance Sheets Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 2017 2016 32,000 22,400 32,000 124,800 $ 56,000 32,000 44,800 96,000 (51,200) $177,600 $172,800 Liabilities and Stockholders' Equit Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 11,200 27,200 28,800 80,000 $177,600 30,400 24,000 12,800 52,800 22,400 60,800 $172,800 For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross proft Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 5387,200 280,000 107,200 $28,800 9,600 38,400 68,800 4,800 64,000 12,800 51,200 Additional data: 1. Depreciation expense was $28,000 2. Dividends declared and paid were $32,000 3. During the year equipment was sold for $13,600 cash. This equipment cost $28,800 originally and had accumulated depreciation of $15,200 at the time of sale. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category 4. All sales and purchases are on account