dividends payable was $ 2,220,000 and $ 8,578,000 at december 31 , 2017 and december 31 , 2016 , respectively , decreasing $ 6,358,000 ( 74.1 % ) . on june 9 , 2017 , the company announced that it would begin paying regular quarterly dividends . on december 13 , 2017 , the company declared its third regular quarterly dividend of the year in the amount of $ 0.22 per share , which was then paid to shareholders in january 2018. at december 31 , 2016 , dividends payable reflected the $ 0.85 special dividend per share declared by the board earlier that month . this dividend was then paid to shareholders in january of 2017 , thus reducing the cash balance , as described above . a full discussion of dividends is provided in note 6 , “ shareholders ' equity ” . - 18 - results of operations twelve-months ended december 31 , 2017 vs. december 31 , 2016 the company reported comparative results from operations for the twelve-month period ended december 31 , 2017 and 2016 as follows : replace_table_token_5_th net sales . the company 's sales for the full year of 2017 were $ 101,799,000 , reflecting an increase of $ 7,748,000 , or 8.2 % over the $ 94,051,000 of sales generated in 2016. the majority of the increase was related to an increase in unit volume , combined with higher sales prices that were necessary to help offset a rise in the company 's material costs . gross profit . the company 's gross profit margins decreased slightly between the two periods , being 60.7 % and 61.5 % for the twelve-months ended december 31 , 2017 and 2016 , respectively . selling expenses . selling expenses consist primarily of employee salaries and associated overhead costs , commissions , and the cost of marketing programs such as advertising , trade shows and related communication costs , and freight . selling expense was $ 16,359,000 and $ 15,694,000 for 2017 and 2016 , respectively , representing a year over year increase of $ 665,000 or 4.2 % . the increase was primarily attributable to a rise in freight and commissions , which change in conjunction with sales unit volume . for the same periods , selling expense as a percentage of net sales was 16.1 % and 16.7 % , respectively . general and administrative expenses . general and administrative expenses consist primarily of employee salaries , benefits for administrative , executive and finance personnel , legal and accounting , insurance , and corporate general and administrative services . general and administrative expenses were $ 17,897,000 and $ 17,108,000 for the years ended december 31 , 2017 and 2016 , respectively , increasing $ 789,000 ( 4.6 % ) between periods . this included an increase in incentive compensation partially due to the increase in profits , and also related to the company 's phantom stock plan , mainly resulting from an increase in the company 's stock price . there was also an increase in insurance costs . the impact of these costs were however tempered by a decrease in legal and product liability related defense costs . as a percentage of sales , general and administrative expenses were 17.6 % and 18.2 % for the twelve-months ended december 31 , 2017 and 2016 , respectively . engineering expense . engineering expenses consist of development expenses associated with the development of new products , and costs related to enhancements of existing products and manufacturing processes . engineering expenses increased $ 108,000 or 3.4 % between periods , being $ 3,293,000 and $ 3,185,000 for the years ended december 31 , 2017 and 2016 , respectively . the change was primarily related to an increase in staffing . as a percentage of sales for the year , engineering expense was 3.2 % in 2017 and 3.4 % in 2016. operating profit . reflecting all of the factors mentioned above , operating profits increased $ 2,320,000 or 10.6 % , ending with a profit of $ 24,217,000 in 2017 , compared to $ 21,897,000 in 2016. interest income . interest income is recorded on cash investments , and interest expense is recorded at times when the company has debt amounts outstanding on its line of credit . there was $ 117,000 of interest income recorded during 2017 and $ 98,000 in 2016 . - 19 - other expense . other income ( expense ) primarily consists of foreign currency exchange gains ( losses ) on transactions with omega flex limited , our united kingdom ( “ uk ” ) subsidiary . during 2016 , the british pound weakened , largely as a result of the uk 's vote to exit the european union . as a result , the company recognized currency related losses of $ 474,000 for 2016. the british pound stabilized during 2017 , and therefore the company only recognized a loss of $ 38,000 during the year . income tax expense . income tax expense was $ 8,450,000 for the full year 2017 , compared to $ 6,975,000 for the same period in 2016 , increasing by $ 1,475,000 ( 21.1 % ) . as outlined in note 7 , “ income taxes ” , the company recognized a one-time tax charge of $ 709,000 during the fourth quarter of 2017 primarily related to unremitted foreign earnings resulting from the recent change in the tax code . the remainder of the increase was largely in correlation with the change in income before taxes . excluding the previously described one-time tax charge , the company 's effective tax rate in 2017 approximates the 2016 rate and does not differ materially from expected statutory rates . story_separator_special_tag currency translation assets and liabilities denominated in foreign currencies are translated into u.s. dollars at exchange rates prevailing on the balance sheet dates . the statements of operations are translated into u.s. dollars at average exchange rates for the period . adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders ' equity . exchange gains and losses resulting from foreign currency transactions are included in the statements of operations ( other income ( expense ) ) in the period in which they occur . income taxes the company accounts for tax liabilities in accordance with asc topic 740 , income taxes . under this method the company recorded tax expense , related deferred taxes and tax benefits , and uncertainties in tax positions . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize the benefit , or that future deductibility is uncertain . also , in accordance with fasb asc topic 740 , the company reviewed the need for a reserve for uncertainties in tax positions at both december 31 , 2017 and 2016 , with no reserve necessary . these reserves are reviewed each quarter . story_separator_special_tag in note 6 of the consolidated financial statements . the company had no borrowings or payments on its line of credit during 2017 or 2016. liquidity we believe our existing cash and cash equivalents will be sufficient to meet our anticipated cash needs for at least the next twelve months . our future capital requirements will depend upon many factors including our rate of revenue growth , the timing and extent of any expansion efforts , and the potential for investments in , or the acquisition of any complementary products , businesses or supplementary facilities for additional capacity . recent accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) , requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . the updated standard will replace most existing revenue recognition guidance in u.s. gaap when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method . the updated standard becomes effective for the company in the first quarter of fiscal year 2018. the company has completed its review of its customer contracts and its analysis of the impact of the disclosure requirements of asu 2014-09. the company plans to adopt the revenue guidance effective january 1 , 2018 , using the modified retrospective approach . the adoption of asu 2014-09 will not have a material impact on our financial statements on an on-going basis . - 24 - in july 2015 , the fasb issued asu 2015-11 , simplifying the measurement of inventory ( topic 330 ) . under this asu , inventory will be measured at the “ lower of cost and net realizable value ” and options that currently exist for “ market value ” will be eliminated . the asu defines net realizable value as the “ estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . ” no other changes were made to the current guidance on inventory measurement . asu 2015-11 is effective for interim and annual periods beginning after december 15 , 2016. the company has evaluated the provisions of this statement , and concluded that the adoption of asu 2015-11 did not have a material impact on the company 's financial position or results of operations . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) . under this asu , lessees are required to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases . by definition , a short-term lease is one in which : ( a ) the lease term is 12 months or less and ( b ) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise . for short-term leases , lessees may elect an accounting policy by class of underlying asset under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis . this change will result in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under the legacy lease accounting guidance . asu 2016-02 is effective for interim and annual periods beginning after december 15 , 2018. early adoption is permitted . the company is currently evaluating its population of leases , and is continuing to assess all potential impacts of the standard , but currently believes the most significant impact relates to its accounting for real estate operating leases . the company anticipates recognition of additional assets and corresponding liabilities related to leases upon adoption , but has not quantified these amounts at this time . the company plans to adopt the standard effective january 1 , 2019. off-balance sheet obligations or arrangements none . tabular disclosure of contractual obligations and off-balance sheet arrangements contractual obligation and commercial commitments the

liquidity and capital resources historically , the company 's primary cash needs have been related to working capital items , which the company has largely funded through cash generated from operations . with regards to liquidity and capital resources , the company had a cash balance of $ 37,938,000 at december 31 , 2017 , and also has the full use of a $ 15,000,000 line of credit available with santander bank , as discussed in detail in note 5. at december 31 , 2016 , the company had cash of $ 35,318,000. operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities , such as those included in working capital . for 2017 , the company 's cash provided from operating activities was $ 18,048,000 , compared to $ 14,758,000 of cash provided during 2016 , thus increasing by $ 3,290,000 between periods . with regards to creating the generation of cash , the company grew net income by $ 1,300,000 , which increased cash , additionally , there were increases in cash attributable to other assets , accrued commissions and sales incentives and accrued compensation of $ 1,947,000 , $ 1,188,000 and $ 762,000 , respectively . last year , the company posted a $ 1,600,000 security deposit to proceed with further hearings related to the company 's 2010 pennsylvania claim ( see discussion in note 10 , commitments and contingencies of the notes to the consolidated financial statements ) , which was recorded in other assets , while there was no such event in the current year . accrued commissions and sales incentives typically fluctuate based upon sales volume , and our customer 's ability to achieve sales growth over the previous year .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources historically , the company 's primary cash needs have been related to working capital items , which the company has largely funded through cash generated from operations . with regards to liquidity and capital resources , the company had a cash balance of $ 37,938,000 at december 31 , 2017 , and also has the full use of a $ 15,000,000 line of credit available with santander bank , as discussed in detail in note 5. at december 31 , 2016 , the company had cash of $ 35,318,000. operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities , such as those included in working capital . for 2017 , the company 's cash provided from operating activities was $ 18,048,000 , compared to $ 14,758,000 of cash provided during 2016 , thus increasing by $ 3,290,000 between periods . with regards to creating the generation of cash , the company grew net income by $ 1,300,000 , which increased cash , additionally , there were increases in cash attributable to other assets , accrued commissions and sales incentives and accrued compensation of $ 1,947,000 , $ 1,188,000 and $ 762,000 , respectively . last year , the company posted a $ 1,600,000 security deposit to proceed with further hearings related to the company 's 2010 pennsylvania claim ( see discussion in note 10 , commitments and contingencies of the notes to the consolidated financial statements ) , which was recorded in other assets , while there was no such event in the current year . accrued commissions and sales incentives typically fluctuate based upon sales volume , and our customer 's ability to achieve sales growth over the previous year .
```    
 Suspicious Activity Report : dividends payable was $ 2,220,000 and $ 8,578,000 at december 31 , 2017 and december 31 , 2016 , respectively , decreasing $ 6,358,000 ( 74.1 % ) . on june 9 , 2017 , the company announced that it would begin paying regular quarterly dividends . on december 13 , 2017 , the company declared its third regular quarterly dividend of the year in the amount of $ 0.22 per share , which was then paid to shareholders in january 2018. at december 31 , 2016 , dividends payable reflected the $ 0.85 special dividend per share declared by the board earlier that month . this dividend was then paid to shareholders in january of 2017 , thus reducing the cash balance , as described above . a full discussion of dividends is provided in note 6 , “ shareholders ' equity ” . - 18 - results of operations twelve-months ended december 31 , 2017 vs. december 31 , 2016 the company reported comparative results from operations for the twelve-month period ended december 31 , 2017 and 2016 as follows : replace_table_token_5_th net sales . the company 's sales for the full year of 2017 were $ 101,799,000 , reflecting an increase of $ 7,748,000 , or 8.2 % over the $ 94,051,000 of sales generated in 2016. the majority of the increase was related to an increase in unit volume , combined with higher sales prices that were necessary to help offset a rise in the company 's material costs . gross profit . the company 's gross profit margins decreased slightly between the two periods , being 60.7 % and 61.5 % for the twelve-months ended december 31 , 2017 and 2016 , respectively . selling expenses . selling expenses consist primarily of employee salaries and associated overhead costs , commissions , and the cost of marketing programs such as advertising , trade shows and related communication costs , and freight . selling expense was $ 16,359,000 and $ 15,694,000 for 2017 and 2016 , respectively , representing a year over year increase of $ 665,000 or 4.2 % . the increase was primarily attributable to a rise in freight and commissions , which change in conjunction with sales unit volume . for the same periods , selling expense as a percentage of net sales was 16.1 % and 16.7 % , respectively . general and administrative expenses . general and administrative expenses consist primarily of employee salaries , benefits for administrative , executive and finance personnel , legal and accounting , insurance , and corporate general and administrative services . general and administrative expenses were $ 17,897,000 and $ 17,108,000 for the years ended december 31 , 2017 and 2016 , respectively , increasing $ 789,000 ( 4.6 % ) between periods . this included an increase in incentive compensation partially due to the increase in profits , and also related to the company 's phantom stock plan , mainly resulting from an increase in the company 's stock price . there was also an increase in insurance costs . the impact of these costs were however tempered by a decrease in legal and product liability related defense costs . as a percentage of sales , general and administrative expenses were 17.6 % and 18.2 % for the twelve-months ended december 31 , 2017 and 2016 , respectively . engineering expense . engineering expenses consist of development expenses associated with the development of new products , and costs related to enhancements of existing products and manufacturing processes . engineering expenses increased $ 108,000 or 3.4 % between periods , being $ 3,293,000 and $ 3,185,000 for the years ended december 31 , 2017 and 2016 , respectively . the change was primarily related to an increase in staffing . as a percentage of sales for the year , engineering expense was 3.2 % in 2017 and 3.4 % in 2016. operating profit . reflecting all of the factors mentioned above , operating profits increased $ 2,320,000 or 10.6 % , ending with a profit of $ 24,217,000 in 2017 , compared to $ 21,897,000 in 2016. interest income . interest income is recorded on cash investments , and interest expense is recorded at times when the company has debt amounts outstanding on its line of credit . there was $ 117,000 of interest income recorded during 2017 and $ 98,000 in 2016 . - 19 - other expense . other income ( expense ) primarily consists of foreign currency exchange gains ( losses ) on transactions with omega flex limited , our united kingdom ( “ uk ” ) subsidiary . during 2016 , the british pound weakened , largely as a result of the uk 's vote to exit the european union . as a result , the company recognized currency related losses of $ 474,000 for 2016. the british pound stabilized during 2017 , and therefore the company only recognized a loss of $ 38,000 during the year . income tax expense . income tax expense was $ 8,450,000 for the full year 2017 , compared to $ 6,975,000 for the same period in 2016 , increasing by $ 1,475,000 ( 21.1 % ) . as outlined in note 7 , “ income taxes ” , the company recognized a one-time tax charge of $ 709,000 during the fourth quarter of 2017 primarily related to unremitted foreign earnings resulting from the recent change in the tax code . the remainder of the increase was largely in correlation with the change in income before taxes . excluding the previously described one-time tax charge , the company 's effective tax rate in 2017 approximates the 2016 rate and does not differ materially from expected statutory rates . story_separator_special_tag currency translation assets and liabilities denominated in foreign currencies are translated into u.s. dollars at exchange rates prevailing on the balance sheet dates . the statements of operations are translated into u.s. dollars at average exchange rates for the period . adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders ' equity . exchange gains and losses resulting from foreign currency transactions are included in the statements of operations ( other income ( expense ) ) in the period in which they occur . income taxes the company accounts for tax liabilities in accordance with asc topic 740 , income taxes . under this method the company recorded tax expense , related deferred taxes and tax benefits , and uncertainties in tax positions . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize the benefit , or that future deductibility is uncertain . also , in accordance with fasb asc topic 740 , the company reviewed the need for a reserve for uncertainties in tax positions at both december 31 , 2017 and 2016 , with no reserve necessary . these reserves are reviewed each quarter . story_separator_special_tag in note 6 of the consolidated financial statements . the company had no borrowings or payments on its line of credit during 2017 or 2016. liquidity we believe our existing cash and cash equivalents will be sufficient to meet our anticipated cash needs for at least the next twelve months . our future capital requirements will depend upon many factors including our rate of revenue growth , the timing and extent of any expansion efforts , and the potential for investments in , or the acquisition of any complementary products , businesses or supplementary facilities for additional capacity . recent accounting pronouncements in may 2014 , the fasb issued asu 2014-09 , revenue from contracts with customers ( topic 606 ) , requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers . the updated standard will replace most existing revenue recognition guidance in u.s. gaap when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method . the updated standard becomes effective for the company in the first quarter of fiscal year 2018. the company has completed its review of its customer contracts and its analysis of the impact of the disclosure requirements of asu 2014-09. the company plans to adopt the revenue guidance effective january 1 , 2018 , using the modified retrospective approach . the adoption of asu 2014-09 will not have a material impact on our financial statements on an on-going basis . - 24 - in july 2015 , the fasb issued asu 2015-11 , simplifying the measurement of inventory ( topic 330 ) . under this asu , inventory will be measured at the “ lower of cost and net realizable value ” and options that currently exist for “ market value ” will be eliminated . the asu defines net realizable value as the “ estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . ” no other changes were made to the current guidance on inventory measurement . asu 2015-11 is effective for interim and annual periods beginning after december 15 , 2016. the company has evaluated the provisions of this statement , and concluded that the adoption of asu 2015-11 did not have a material impact on the company 's financial position or results of operations . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) . under this asu , lessees are required to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases . by definition , a short-term lease is one in which : ( a ) the lease term is 12 months or less and ( b ) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise . for short-term leases , lessees may elect an accounting policy by class of underlying asset under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis . this change will result in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under the legacy lease accounting guidance . asu 2016-02 is effective for interim and annual periods beginning after december 15 , 2018. early adoption is permitted . the company is currently evaluating its population of leases , and is continuing to assess all potential impacts of the standard , but currently believes the most significant impact relates to its accounting for real estate operating leases . the company anticipates recognition of additional assets and corresponding liabilities related to leases upon adoption , but has not quantified these amounts at this time . the company plans to adopt the standard effective january 1 , 2019. off-balance sheet obligations or arrangements none . tabular disclosure of contractual obligations and off-balance sheet arrangements contractual obligation and commercial commitments the

