QUESTION TWO Avery Slings & Arrows, Inc. Avery Slings & Arrows Income Statement For year ending 12/31/16 Sales Earnings of affiliates (equity method) Realized loss on sale of equipment Realized gain on sale of investments Interest and dividend revenue 6,600,000 150,000 (65,000) 53,000 15,000 Total revenues 6,753,000 Cost of goods sold Salaries and wages Other operating expenses Bad debt expense Depreciation expense Amortization of intangibles Accretion expense Interest expense Income tax expense Net income 3,490,000 632,000 421,000 45,000 757,000 5,000 25,000 935.000 177,000 6,487,000 266,000 Avery Slings & Arrows Balance Sheet 12/31/16 12/31/15 Current Assets Cash Securities Available for Sale (at market) Accounts Receivable (net) Merchandise Inventory Prepaid Expenses 2,261,000 2,850,000 258,000 100,000 1,947,000 1,900,000 602,000 900,000 4,000 50,000 5,072,000 5,800,000