Problem 23-6 Comparative balance sheet accounts of Pina Inc. are presented below. PINA INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 Debit Accounts 2017 2016 Cash $42,200 $33,900 Accounts Receivable 71,100 59,600 Inventory 30,000 23,800 Equity investments 22,400 38,400 Machinery 30,200 18,600 Buildings 67,000 56,000 Land 7,500 7,500 $270,400 $237,800 Credit Accounts Allowance for Doubtful Accounts $2,300 $1,600 Accumulated DepreciationMachinery 5,600 2,200 Accumulated DepreciationBuildings 13,400 9,100 Accounts Payable 34,800 24,600 Accrued Payables 3,400 2,600 Long-Term Notes Payable 20,900 31,200 Common Stock, no-par 150,000 125,000 Retained Earnings 40,000 41,500 $270,400 $237,800 Additional data (ignoring taxes): 1. Net income for the year was $44,400. 2. Cash dividends declared and paid during the year were $20,900. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $25,100 were sold during the year for $28,100. No unrealized gains and losses were recorded on these investments in 2017. 5. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250. Pinas 2017 income statement follows (ignoring taxes). Sales revenue $544,300 Less: Cost of goods sold 381,900 Gross margin 162,400 Less: Operating expenses (includes $8,450 depreciation and $5,327 bad debts) 120,200 Income from operations 42,200 Other: Gain on sale of investments $3,000 Loss on sale of machinery (800 ) 2,200 Net income $44,400 PINA INC. Statement of Cash Flows (Indirect Method) $ Adjustments to reconcile net income to $ $