A comparative balance sheet and income statement for Eaton Company follow:

Eaton Company
Comparative Balance Sheet
December 31, 2011 and 2010
	2011	2010
Assets
Cash..............................................................	$ 4	$ 11
Accounts receivable......................................	310	230
Inventory.......................................................	160	195
Prepaid expenses...........................................	8	6
Total current assets........................................	482	442
Property, plant, and equipment.....................	500	420
Less accumulated depreciation.................	85	70
Net property, plant, and equipment..............	415	350
Long-term investments.................................	31	38
Total assets....................................................	$928	$830
Liabilities and Stockholders' Equity
Accounts payable..........................................	$300	$225
Accrued liabilities.........................................	70	80
Income taxes payable....................................	71	63
Total current liabilities...................................	441	368
Bonds payable...............................................	195	170
Total liabilities...............................................	636	538
Common stock..............................................	160	200
Retained earnings..........................................	132	92
Total stockholders' equity.............................	292	292
Total liabilities and stockholders' equity......	$928	$830

Eaton Company
Income Statement
For the Year Ended December 31, 2011
Sales..........................................................		$750
Cost of goods sold...................................		450
Gross margin.............................................		300
Selling and administrative expenses.........		223
Net operating income...............................		77
Nonoperating items:
Gain on sale of investments.................	$ 5
Loss on sale of equipment...................	(2)	3
Income before taxes.................................		80
Income taxes.............................................		24
Net income...............................................		$ 56