Problem 12-7A (Part Level Submission) Presented below are the financial statements of Skysong Company. Skysong Company Comparative Balance Sheets Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 2017 72,450 41,400 57,960 124,200 (66,240) (49,680) 2016 41,400 28,980 41,400 161,460 $229,770 $223,560 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 39,330 14,490 35,190 37,260 103,500 $229,770 $31,050 16,560 68,310 28,980 78,660 $223,560 Skysong Company For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $500,940 362,250 138,690 $37,260 49,680 89,010 6,210 82,800 16,560 $66,240 12,420 Additional data 1. Depreciation expense was $36,225 2. Dividends declared and paid were $41,400 3. During the year equipment was sold for $17,595 cash. This equipment cost $37,260 originally and had accumulated depreciation of $19,665 at the time of sale