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Presented Below Are Condensed Data from the Financial Statements of Gallo

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Essay

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}
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Required: How much of Gallo Factory is financed by creditors at the end of December 2017? Evaluate the change from 2016 to 2017.


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