Presented below are the financial statements of Waterway Industries. Waterway Industries Comparative Balance Sheets December 31 2016 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 2017 $121,450 69,400 69400 48,580 69,400 208,200 270,660 111,040) (83,280) $385,170 $374,760 97,160 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 65,930 52,050 24,290 27,760 58,990 114,510 62,460 48,580 173,500 131,860 $385,170 $374,760 Waterway Industries Income Statement For the Year Ended December 31,2017 Sales revenue 839,740 607,250 232,490 Cost of goods sold Gross proft Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $62,460 20.820 83.280 149,210 10,410 138,800 27,760 111,040 Additional data: 1. 2. 3. Deprecia Dividends declared and paid were $ 69,400. During the year equipment was sold for $ 29,495 cash. This equipment cost $ 62.460 originally and had accumulated depreciation of $ 32,965 at the time of sale. tion expense was $ 60.725