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Presented Below Are Condensed Data from the Financial Statements of Gallo

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Presented below are condensed data from the financial statements of Gallo Factory for 2017 and 2016.The figures are expressed in thousands.Use this information to answer the questions that follow.

 Statement A 20172016 Total current assets $82,309$80,080 Property, plant, and equipment  (net of accumulated depreciation) 63,45162,724 Investments 3031,061 Other assets 3,4382,606 Total assets $149,501$146,471 Total current liabilities $33,928$28,668 Long-term debt 20,49125,676 Deferred income taxes and contingencies 4,1745,208 Total liabilities $58,593$59,552 Total stockholders’ equity $90,908$86,919 Total liabilities and stockhol ders’ equity $149,501$146,471 Statement B 20172016 Net sales $209,203$174,206 Cost of sales 136,225114,284 Gross profit $72,978$59,922 Selling, general, and administrative expenses 63,89553,520 Other income (expense) 693(118) Income (loss) before income taxes $9,776$6,284 Income tax expense $3,534$3,388 Net income (loss) 6,242$3,896\begin{array}{lrr}\text { Statement A }&2017&2016\\\\\text { Total current assets } & \$ 82,309 & \$ 80,080 \\\text { Property, plant, and equipment } & & \\\text { (net of accumulated depreciation) } & 63,451 & 62,724 \\\text { Investments } & 303 & 1,061 \\\text { Other assets } & 3,438 & 2,606\\\text { Total assets }&\$149,501&\$146,471\\\\\text { Total current liabilities } & \$ 33,928 & \$ 28,668 \\\text { Long-term debt } & 20,491 & 25,676 \\\text { Deferred income taxes and contingencies } & 4,174 & 5,208 \\\text { Total liabilities } & \$ 58,593 & \$ 59,552 \\\text { Total stockholders' equity } & \$ 90,908 & \$ 86,919 \\\text { Total liabilities and stockhol ders' equity } & \$ 149,501 & \$ 146,471 \\\\\text { Statement B }&2017&2016\\\text { Net sales } & \$ 209,203 & \$ 174,206 \\\text { Cost of sales } & 136,225 & 114,284 \\\text { Gross profit } & \$ 72,978 & \$ 59,922 \\\text { Selling, general, and administrative expenses } & 63,895 & 53,520 \\\text { Other income (expense) } & 693 & (118)\\\text { Income (loss) before income taxes } & \$ 9,776 & \$ 6,284 \\\text { Income tax expense } & \$ {3,534} & \$ 3,388 \\\text { Net income (loss) } &{6,242}&{\$ 3,896}\end{array}
-Required: Was Gallo Factory profitable both years? What are the amounts of the total revenues and total expenses,respectively,for 2017? Which financial statement provides this information to you?

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Definitions:

Articles of Incorporation

Official papers submitted to a government agency for the purpose of officially registering the formation of a corporation.

Mutual Agency

Act of a single partner is binding on all members of the partnership.

Raising Capital

The process of obtaining funds to finance business activities, which can be done through equity, debt, or other financial instruments.

Unlimited Life

A financial concept usually related to corporations, indicating that they can continue operating indefinitely unless dissolved by their owners or the law.

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