Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity FRANKLIN COMPANY Balance Sheets As of December 31 Preferred stock, (par value $10, 5% cumulative, non-participating; 7,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity FRANKLIN COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Year 3 Revenues Sales (net) other revenues $300,000 9,400 Total revenues 309,400 $280,000 6,400 286,400 Expenses Cost of goods sold 150,000 124,000 Selling, general, and administrative 62,000 57,000 Interest expense 10,100 9,300 Income tax expense 58,000 57,000 Total expenses 280,100 247,300 Net earnings (net income) 29,300 39,100 Retained earnings, January 1 103,000 71,000 Less: Preferred stock dividends Common stock dividends 3,500 3,500 3,600 3,600 Retained earnings, December 31 $125,200 $103,000 Year 4 Year 3 $ 19,500 20,708 $ 15,500 6,700 48,008 40,000 133,000 141,000 27,000 12,000 248,200 215,200 22,000 15,000 290,000 275,000 33,000 28,000 $593,200 $533,200 $ 31,200 133,800 22,000 $ 18,200 120,000 16,000 187,000 154,200 110,000 110,000 31,000 26,000 141,000 136,000 328,000 290, 200 70,000 70,000 70,000 70,000 125,200 103,000 265,200 243,000 $593,200 $533,200