Presented Below Are Condensed Data from the Financial Statements of Gallo

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.
Required: Based on the information provided,is Gallo Factory considered a business or nonbusiness entity? How do you know by examining the financial statements?
$\begin{array}{lrr}\text { Statement A }&2017&2016\\\\\text { Total current assets } & \$ 82,309 & \$ 80,080 \\\text { Property, plant, and equipment } & & \\\text { (net of accumulated depreciation) } & 63,451 & 62,724 \\\text { Investments } & 303 & 1,061 \\\text { Other assets } & 3,438 & 2,606\\\text { Total assets }&\$149,501&\$146,471\\\\\text { Total current liabilities } & \$ 33,928 & \$ 28,668 \\\text { Long-term debt } & 20,491 & 25,676 \\\text { Deferred income taxes and contingencies } & 4,174 & 5,208 \\\text { Total liabilities } & \$ 58,593 & \$ 59,552 \\\text { Total stockholders' equity } & \$ 90,908 & \$ 86,919 \\\text { Total liabilities and stockhol ders' equity } & \$ 149,501 & \$ 146,471 \\\\\text { Statement B }&2017&2016\\\text { Net sales } & \$ 209,203 & \$ 174,206 \\\text { Cost of sales } & 136,225 & 114,284 \\\text { Gross profit } & \$ 72,978 & \$ 59,922 \\\text { Selling, general, and administrative expenses } & 63,895 & 53,520 \\\text { Other income (expense) } & 693 & (118)\\\text { Income (loss) before income taxes } & \$ 9,776 & \$ 6,284 \\\text { Income tax expense } & \$ {3,534} & \$ 3,388 \\\text { Net income (loss) } &{6,242}&{\$ 3,896}\end{array}$