Preparing a balance sheet and income statement. The accounting records of eBay appear below (amounts in thousands).

December 31 Balance Sheet Items Year 11 Cash $ 723,419 Accounts Receivable 101,703 Other Current Assets 58,683 Property, Plant, and Equipment (net of depreciation) 142,349 Investment in Securities (noncurrent) 416,612 Goodwill and Other Intangibles 198,639 Other Noncurrent Assets 37,124 Accounts Payable to Suppliers 33,235 Other Current Liabilities 146,904 Long-term Debt 12,008 Other Noncurrent Liabilities 57,244 Common Stock 1,275,517 Retained Earnings 153,621 Income statement items Interest Net Operating and Other Revenues Revenues

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Cost Product of Net Development Operating Expenses Revenues Selling Administrative Other Interest Operating Expenses Expense Expenses Expenses Income Dividend Taxes Information Dividends Declared and Paid Year 12

$1,199,033 131,453 138,002 218,028 604,871 1,735,489 97,598 47,424 338,800 13,798 167,949 3,108,754 447,719 For Year 12

$1,214,100 96,352 213,876 104,636 349,650 171,785 28,969 1,492 145,946

a. Prepare an income statement for eBay for the year ending December 31. Year 12. Refer to Exhibit 1.2 for help in designing the format of the statement.

b. Prepare a comparative balance sheet for eBay on December 31. Year 1 1, and December 31, Year 12. Refer to Exhibit 1.1 for help in designing the format of the statement.

c. Prepare an analysis of the change in retained earnings during the year ending December 31, Year 12.