Presented below are the financial statements of Sheridan Company Sheridan Company Comparative Balance Sheets December 31 2017 2016 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total $77,700 $44,400 44,400 31080 62,160 44,400 133,200 173,160 71,040) (53,280) $246,420 $239,760 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $42,180 $33,300 15,540 17,760 37,740 73,260 39,960 31,080 111,000 84,360 $246,420 $239,760 Sheridan Company Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses 13,32053.280 Income from operations Interest expense Income before income taxes Income tax expense Net income $537,240 388,500 148,740 $39,960 95,460 6,660 88,800 17,760 $71,040 Additional data 1. Depreciation expense was $38,850. 2. Dividends declared and paid were $44,400. 3. During the year equipment was sold for $18,870 cash. This equipment cost $39,960 originally and had accumulated depreciation of $21,090 at the time of sale Sheridan Company Statement of Cash Flows Adjustments to reconcile net income to eTextbook and Media