Question 1 Pina Inc., a greeting card company, had the following statements prepared as of December 31, 2017 PINA INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash Short-term debt ivestments (availabe-for-sale) 35,30 nventory Prepaid rent Equipment $5,900 7,000 2,500 120D 17,900 9,80060,10D 3,900 55,200 130400 5,100 [34,700) 45,50D (25,200) Copyrights 50.4DD Total assets $314,40D $295S700 Accounts payable Income taxes payable Salaries and wages payable Short-term loans paysble Long-term loans payable Commen stock, $10 per Contributed capital, common stock Retained earnings Total liablities & stockholders' equity 46,100$39,900 4,100 6,000 000 4, ,00010,100 0,40069,10 00,0D0 100,O00 0,000 30,000 58,000 314,40D $29570 PINA INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 75,900 64,750 Cost of goods sold Gross profit Operating experses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net incom 43,750 $11,500 9,500 34,250 6,850 2,000 Additional information: Dividends in the amount of $6,000 were declared and paid during 2017 Depreciation expense and amortization expense are included in operating expenses. . No unrealized gains or losses have occurred on the investments during the year. 4 Equipment that had a cost of $20,200 and was 70% depreciated was sold during 2017