The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense 2017 2016 $125,000 $114,000 58,000 54,000 67,000 60,000 40,500 37,500 3,500 3,500 23,000 6,900 19,000 5,700 Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and equipment, Net Total Assets Accounts Payable. Income Tax Payable Note Payable, Long-Term Total Liabilities Contributed Capital (9,050 shares) Retained Earnings Total Liabilities and Shareholders' Equity $ 16,100 $13,300 $ 47,742 $14,350 32,000 39,500 32,500 33,000 85,000 95,000 $197,242 $181,850 1 $ 33,792 $ 28,900 950 35,000 450 35,000 69,742 64,350 90,500 90,500 37,000 27,000 $197,242 $181,850 One-half of all sales are on credit. During 2017, cash dividends amounting to $6,100 were declared and paid.