Income statement and balance sheet data for The Athletic Attic are provided below.

THE ATHLETIC ATTIC Income Statement For the year ended December 31
	2016	2015
Net sales	$9,100,000	$10,680,000
Cost of goods sold	5,600,000	6,980,000
Gross profit	3,500,000	3,700,000
Expenses:
Operating expenses	1,570,000	1,620,000
Depreciation expense	210,000	210,000
Interest expense	42,000	42,000
Income tax expense	370,000	424,000
Total expenses	2,192,000	2,296,000
Net income	$1,308,000	$1,404,000

THE ATHLETIC ATTIC Balance Sheet December 31
	2016	2015	2014
Assets
Current assets:
Cash	$ 208,000	$ 156,000	$ 227,000
Accounts receivable	762,000	742,000	992,000
Inventory	1,027,000	1,357,000	1,727,000
Supplies	77,000	102,000	132,000
Long-term assets:
Equipment	1,180,000	1,180,000	1,180,000
Less: Accumulated depreciation	(220,000)	(420,000)	(620,000)
Total assets	$3,034,000	$3,117,000	$3,638,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 88,800	$ 111,000	$ 180,800
Interest payable	4,200	0	4,200
Income tax payable	32,000	37,000	42,000
Long-term liabilities:
Notes payable	520,000	520,000	520,000
Stockholders' equity:
Common stock	620,000	620,000	620,000
Retained earnings	1,769,000	1,829,000	2,271,000
Total liabilities and stockholders