=+The comparative financial statements of Caylay Technologies Inc. are as follows. The market price of Caylay Technologies Inc. common stock was $40 on December 31, 2010.

Caylay Technologies Inc.

Comparative Retained Earnings Statement For the Years Ended December 31, 2010 and 2009 2010 2009 Retained earnings, January 1 . . . . . . . . . . . . . . . . . . . . . . . $1,453,600 $1,218,100 Add net income for year . . . . . . . . . . . . . . . . . . . . . . . . . . 482,850 307,500 __________ __________ Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,936,450 $1,525,600 __________ __________ Deduct dividends: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

On preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 24,000 $ 24,000 On common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000 48,000 __________ __________ Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 72,000 $ 72,000 __________ __________ Retained earnings, December 31 . . . . . . . . . . . . . . . . . . . . $1,864,450 $ 1,453,600 __________ __________ __________ __________ Caylay Technologies Inc.

Comparative Income Statement