The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 2017 2016 Assets Cash Accounts receivable Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land $ 76,387$ 41,110 24,820 172,940 4,810 251,300 285,960 (143,210) (233,680) 79,180 33,846 157,220 2,405 192,280 Total assets $570,228 375,140 Liabilities Accounts payable (inventory) Salaries payable $ 67,159 28,817 76,180 24,700 Stockholders' equity Common stock, $50 par value Retained earnings 254,500 219,752 199,500 74,760 Total liabilities and equity $570,228 375,140 Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold $1,498,000 (796,138) 701,862 Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses (22,790) (22,820) (253,550) (257,710) Net income $ 144,99:2