2. Kohn Corporation comparative balance sheets at December 31 (in millions):

Assets 20x1 20x2 Liabilifies and Equity Cash $ 5 $ 3 Accounts receivable 15 22 Inventories 12 15 Fixed assets, net 50 55 Other assets 8 5 - -

Total assets $90 $100

= -

Notes payable Accounts payable Accrued wages Accrued taxes Long-term debt Common stock Retained earnings Total liabilities and equity Kohn Corporation statement of income and retained earnings year ended December 31,20x2:

Net sales Expenses Cost of goods sold Selling, general, and administrative Depreciation Interest Net income before taxes Less: Taxes Net income Add: Retained earnings at 12/31 /XI Subtotal Less: Dividends Retained earnings at 12/31/x2