2.

At the end of the year, which company had the

highest net income?

highest percent of net income to revenues?

Garnet Corp. Lowell Co. Branch, Inc. Beginning Assets Liabilities 32 80 $ 49 23 4 4 8 Common stock Retained earnings 6 25 5 11 $ 52 $ 24 Ending Assets Liabilities Common stock Retained earnings 83 $ 51 34 6 11 6 26 7 $ 172 $ 40 Income statement Revenues Expenses Net income 225 $ 205 144 20 28 Statement of retained earnings Beginning RE $ + Net income 5 $ 11 25 $ 20 (19) 28 (26) 6 (2) - Dividends 26 $ 7 $ 15 = Ending RE