Aa Aa E 10. Profitability analysis Profitability analysis focuses on the ability of a company to earn profits with existing resources. The relationships between operating results (as shown in the income statement) and the resources available for use in the business (reported in the balance sheet) are indicators of profitability. Jamison Co.'s income statement for the year ended December 31, 2013 and balance sheets at December 31, 2013 and 2012 are shown. Jamison Co. Jamison Co. Income Statement Comparative Balance Sheet For the Year Ended December 31, 2013 December 31, 2013 and 2012 $5,200 2012 Net sales 2013 4,630 Total expenses Assets Income before interest and income tax $570 Current assets $1,590 $1,470 Interest expense 50 Long-term investments 100 100 $520 Fixed assets 920 820 Income before income tax Income tax expense $2,610 $2,390 180 Total assets $340 Net income Liabilities $560 $670 60 Current liabilities Preferred dividends $280 Long-term liabilities Net income available to common stockholders $1,080 $1,140 Total liabilities Stockholders' Equity $200 $200 Preferred stock Common stock 500 500 Retained earnings 830 550 Total stockholders' equity $1,530 $1,250 Total liabilities and stockholders' equity $2,610 $2,390 Suggest