The following are the financial statements of Nosker Company NOSKER COMPANY Balance Sheets December 31 2017 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment 2016 $21,000 18,900 20,900 77,400 (29,900) (23,600 $128,900 $114,600 $37,100 32,600 29,900 59,200 Total Liabilities and Stockholders' Equi Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,000 $16,700 8,500 33,300 14,400 41,700 $128,900 $114,600 7,500 27,700 18,300 47,400 Total NOSKER COMPANY For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $242,500 176,900 65,600 24,000 41,600 3,100 38,500 8,800 $29,700 Additional data 1. Dividends declared and paid were $24,000 2. During the year equipment was sold for $9,800 cash. This equipment cost $18,200 originally and had a book value of $9,800 at the time of sale 3. All depreciation expense, $14,700, is in the operating expenses 4. All sales and purchases are on account