Preparing a balance sheet and income statement. The accounting records of Southwest Airlines reveal the following for a recent year (amounts in thousands):

a. Prepare a comparative balance sheet for Southwest Airlines as of December 31, Year 8 and Year 9 . Classify each balance sheet item into one of the following categories: current assets, noncurrent assets, current liabilities, noncurrent liabilities, and shareholders' equity.

b. Prepare an income statement for Southwest Airlines for the year ended December 31, Year 9. Separate income items into revenues and expenses.

c. Prepare a schedule explaining the change in retained earnings between December 31, Year 8 and December 31, Year 9.

d. Compare the amounts on Southwest Airlines' balance sheet on December 31, Year 8 and December 31, Year 9. Identify the major changes and suggest possible explanations for the changes.

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BALANCE SHEET ITEMS Accounts Payable Accounts Receivable Cash December 31 Year 8 $ 157,415 Year 9 $ 156,755 88,799 73,448 378,511 418,819 Common Stock Current Maturities of Long-term Debt Inventories Long-term Debt 352,943 449,934 11,996 7,873 50,035 65,152 623,309 871,717 Other Current Assets 56,810 73,586 Other Current Liabilities 681,242 795,838 Other Noncurrent Assets 4,231 12,942 Other Noncurrent Liabilities 844,116 984,142 Property, Plant, and Equipment (net) 4,137,610 5,008,166 Retained Earnings... 2,044,975 2,385,854 INCOME STATEMENT ITEMS Fuel Expense Income Tax Expense. Interest Expense Interest Revenue Maintenance Expense Other Operating Expenses Sales Revenue Salaries and Benefits Expenses For the Year Ended December 31, Year 9 $ 492,415 299,233 22,883 14,918 367,606 1,638,753 4,735,587 1,455,237