10. What is the NET Income? xxx Pitts Corporation Balance Sheet Income Statement 2003 2004 ASSETS Cash and equivalents Accounts Receivable 3,000 40% 1,200 1,800 190 200 Total Revenues Cost of Goods Sold 560 Inventory 410 Gross Profit 1,160 1,240 2,200 2,600 1,300 1,400 2,460 2,640 Total Current Assets Operating Expenses 33% 1,000 27% 800 Gross Fixed Assets Accumulated Depreciation EBITDA 10% 300 500 Net Fixed Assets Depreciation EBIT (Operating Income) 1796 3% 139, 40% TOTAL ASSETS Interest Expense 100 400 EBT (Pre-tax Income) LIABILITIES AND EQUITY 160 240 285 200 140 625 300 250 150 700 Taxes Accounts Payable Notes Payable Accrued Taxes and Expenses Net Income Dividends 160 Total Current Liabilities Change in Retained Earnings 865 890 Long-term Debt Shares Outstanding EPS 500 0.48 0.32 Common Stock Additional Paid-in-Capital Retained Earnings 200 200 200 200 Dividends per Share 570 970 1,050 650 Total Shareholders Equity TOTAL LIABILITIES AND EQUITY 2,460 2,640