1. At the end of last month, Paarl Manufacturing had $45 954 in the bank. It owed the bank $224 000 because of the mortgage. It also had a working capital loan of $30 000. Its customers owed $22 943 and it owed its suppliers $12 992. The company owned property worth $250 000. It had $123 000 in finished goods, $102 000 in raw materials, and $40 000 in work in progress. Its production equipment was worth $450 000 when new (partially paid for by a large government loan due to be paid back in three years) but had accumulated a total of $240 000 in depreciation-$34 000 worth last month. The company has investors who put up $100 000 for their ownership. It has been reasonably profitable; this month the gross income from sales was $220 000, and the cost of the sales was only $40 000. Expenses were also relatively low; salaries were $45 000 last month, while the other expenses were depreciation, maintenance at $1500, advertising at $3400, and insurance at $300. In spite of $32 909 in accrued taxes (Paarl pays taxes at 55 percent), the company had retained earnings of $135 000. Construct a balance sheet (as of the end of this month) and income statement (for this month) for Paarl Manufacturing. Should the company release some of its retained earnings through dividends at this time?