Problem 18-4A Financial information for Messersmith Company is presented below. MESSERSMITH COMPANY Balance Sheets December 31 2017 2016 Assets Cash Short-term investments Accounts receivable (net) Inventory Prepaid expenses Land Building and equipment (net) $ 115,500107.250 66,000 132,000 222,750 37,950 214,500 288,750 $1,128,600 $1,069,200 85,800 161,700 206,250 47,850 214,500 297,000 Liabilities and Stockholders' Equity Notes payable Accounts payable Accrued liabilities Bonds payable, due 2020 Common stock, $10 par Retained earnings $165,000 $165,000 69,300 66,000 247,500 330,000 191,400 51,128,600$1,069,200 79,200 82.500 247,500 330,000 224.400 MESSERSMITH COMPANY Income Statement For the Years Ended December 31 2017 2016 Net sales Cost of goods sold Gross profit Operating expenses Net income $1.402.500 1,023,000 379,500 308 550 s 70.950 $1.303,500 948.750 354.750 285,450 s 69.300 Additional information 1. Inventory at the beginning of 2016 was $194.700 2. Total assers at the beginning of 2016 were $1,039 50o Inventory burnave