W Current Students | Wayne St X Dashboard X Mail - Maggie Fehringer - O X ODE 2023-04-27 10-02.pdf X Course Hero X Homework Help - Q&A from X + X C File | C:/Users/maggi/Downloads/2023-04-27%2010-02.pdf Q . .. Le Import favorites Express VPN Series McAfee Security LastPass password.. M Gmail YouTube Maps V Draw | T Read aloud + 1 of 1 | 2 | ED work Problem # 3 MICHAELS COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $ 10,000 $4,000 Accounts receivable 20.500 12.950 Short-term investments 22,000 30,000 Inventory 35,000 Prepaid rent 3,000 12,000 Prepaid insurance 2,100 O Supplies 1,000 Land 125,000 75,000 Buildings 350,000 350,000 Accumulated depreciation-buildings 105,000) (87,500) Equipment 525,000 400,000 Accumulated depreciation-equipment 130,000) (112,000) Patents 45,000 50,000 Total assets $910,600 $971,100 Accounts payable 22,000 32,000 Income taxes payable 5.000 4,000 Salaries and wages payable 5,000 Short-term notes payable 10,000 10,000 Long-term notes payable 60,000 70,000 Bonds payable 400,000 400,000 Premium on bonds payable 20,303 25,853 Common stock 240,000 220,000 + in capital in excess of par-common stock 25,000 17,300 Retained earnings 123,297 88,747 Total liabilities and stockholders' equity $910,60 $871,100 MICHAELS COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue 1,160,000 Cost of goods sold 748,000 Gross margin 412,000 Operating expenses Selling expenses $ 79,200 Administrative expenses 156,700 Depreciation/ Amortization expense $40,500 Total operating expenses 276,400 Income from operations 135,600 Other revenues/ expense Gain on sale of land 8,000 Gain on sale of short-term investment 4.000 Dividend revenue 2,400 Interest expense (51,750) (37,350) Income before taxes -98,250 Income tax expense 39,400 Net income 56,850 Dividends to common stockholders (24,300) To retained earnings $ 34,530