The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed the following summarized data: 2017 2016 Income Statement Sales Revenue* $ 119,000 $ 108,000 Cost of Goods Sold 55,600 51,600 Gross Profit 63,400 56,400 Operating Expenses 38,700 35,700 Interest Expense 4,900 4,900 Income before Income Tax Expense 19,800 15,800 Income Tax Expense (30%) 5,940 4,740 Net Income $ 13,860 $ 11,060 Balance Sheet Cash $ 64,580 $ 14,630 Accounts Receivable, Net 46,000 36,500 Inventory 29,500 47,000 Property and equipment, Net 113,000 123,000 Total Assets $ 253,080 $ 221,130 Accounts Payable $ 73,730 $ 48,640 Income Tax Payable 1,090 590 Note Payable, Long-Term 49,000 49,000 Total Liabilities 123,820 98,230 Contributed Capital (9,450 shares) 94,500 94,500 Retained Earnings 34,76.

1. The comparative financial statements prepared at December 31, 2017, for Pinnacle Plus showed
the following summarized data: 2017 2016 Income Statement Sales Revenue* $ 119,000 $
108,000 Cost of Goods Sold 55,600 51,600 Gross Profit 63,400 56,400 Operating Expenses
38,700 35,700 Interest Expense 4,900 4,900 Income before Income Tax Expense 19,800 15,800
Income Tax Expense (30%) 5,940 4,740 Net Income $ 13,860 $ 11,060 Balance Sheet Cash $
64,580 $ 14,630 Accounts Receivable, Net 46,000 36,500 Inventory 29,500 47,000 Property and
equipment, Net 113,000 123,000 Total Assets $ 253,080 $ 221,130 Accounts Payable $ 73,730 $
48,640 Income Tax Payable 1,090 590 Note Payable, Long-Term 49,000 49,000 Total Liabilities
123,820 98,230 Contributed Capital (9,450 shares) 94,500 94,500 Retained Earnings 34,76