ROBLEMS Terry company's 2014 income statement and comparative balance sheets at December 31 of 2013 and 2014 are shows. Terry Company Income Statement For the year Ended December 31, 2016 Sales Cost of Goods Sold Gross Profit Wages Expenses Depreciation Expense Other Operating Expenses Income Tax Expense Net Income $390,000 235,000 $155,000 $ 63,000 14,000 26,000 17,000 120,000 $ 35,000 Terry Company Balance Sheets Assets Dec. 31, 2016 Dec. 31, 2015 Cash $ 16,000 $ 30,000 Accounts Receivable (net) 28,000 35,000 Inventory 110,000 84,000 Prepaid Expense 12,000 8,000 Plant Assets 178,000 130,000 Accumulated Depreciation (76,000) (62.000) Total Assets $268,000 $225,000 Liabilities and Stockholders' Equity Accounts Payable $ 27,000 $ 14,000 Wages Payable 6,000 2,500 Income Tax Payable 3,000 4,500 Common Stock 135,000 125,000 Retained Earnings 97,000 79,000 Total Liabilities and $268,000 $225,000 Stockholder Equity