Problem 12-7A Presented below are the financial statements of Sunland Company Sunland Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 2017 2016 $55,650 31,800 44,520 95,400 $31,800 22,260 31,800 124,020 (50,880) (38,160) $176,490 $171,720 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 30,210 11,130 27,030 28,620 79,500 $176,490 $23,850 12,720 52,470 22,260 60,420 $171,720 Sunland Company Income Statement 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 $384,780 278,250 106,530 $28,620 9,540 38,160 68,370 4,770 63,600 12,720 $50,880