Problem 13-4A The following financial information is for Sandhill Company SANDHILL COMPANY Balance Sheets December 31 2016 Assets Cash Debt investments (short-term) Accounts receivable Inventory Prepaid expenses Land Building and equipment (net) Total assets Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2017 Common stock, $10 par Retained earnings Total liabilities and stockholders' equity 2017 $72,000 $68,000 40,000 89,000 235,000 169,000 29,000 133,000 133,000 264,000 189,000 $889,000 $717,000 51,000 108,000 26,000 $171,000 $107,000 50,000 40,000 252,000 169,000 208,000 208,000 149,000 143,000 $717,000 69,000 40,000 $889,000 SANDHILL COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue Cost of goods sold Gross profit $899,000 $786,000 645,000 574,000 254,000 212,000 Operating expenses 196,000160,000 $58,000 $52,000 Net income