Sheridan Company Comparative Balance Sheets December 31 \begin{tabular}{lcc} Assets & 2020 & 2019 \\ Cash & $37,200 & $19,800 \\ Accounts receivable & 33,000 & 18,700 \\ Inventory & 30,400 & 20,400 \\ Equipment & 59,300 & 78,000 \\ Accumulated depreciation-equipment & (29,300) & (23,300) \\ & $130,600 & $113,600 \\ \hline \hline \end{tabular} Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $130,60049,000$113,60041,900 Sheridan Company Income Statement For the Year Ended December 31, 2020 Sales revenue $242,900 Cost of goods sold 175,600 Gross profit 67,300 Operating expenses Income from operations 42,50024,800 Interest expense Income before income taxes 4,00038,500 Income tax expense Net income $31,000 1. Dividends declared and paid were $23,900. 2: During the year, equipment was sold for $9,600 cash. This equipment cost $18,700 originally and had a book value of $9,600 at the time of sale. 3. All depreciation expense, $15,100, iskn the operating expenses. 4. All sales and purchases are on account. Adjustments to reconcile net income to $