C$.$ Utley Inc. C$.$ Utley Inc.

Income Statement Comparative Balance Sheets

For years ended December $31,2017$ and $2018$ December $31,2018$ and $2017$

$20182017$ Change

$20182017$ Current assets:

Sales $($all on credit$)$ $$607,000$ $$546,000$ Cash $$80,640$

$$54,300$

$$26,340$

Cost of goods sold $(342,000)(280,000)$ Accounts receivable $($net$)41,00034,0007,000$

Gross margin $265,000266,000$ Inventory $46,00044,0002,000$

Prepaid expenses $1,5003,400-1,900$

Depreciation expense $37,00052,000$ Other current assets $2,1603,300-1,140$

Other operating expenses $129,000107,000$ Total current assets $171,300139,00032,300$

Total operating expenses $166,000159,000$

Operating income $99,000107,000$ Long$-$term Investments $84,00058,00026,000$

Other income $($expenses$)$ Plant assets $310,000259,00051,000$

Interest expense $(4,800)(3,600)$ Less: accumulated depreciation $(78,600)(52,000)26,600$

Gain on sale of investments $6,2004,300$ Total plant assets $231,400207,00024,400$

Loss on sale of plant assets $(3,400)(4,100)$ Total assets $486,700404,00082,700$

Total other income $($expenses$)(14,400)(3,400)$

Current liabilities:

Income before income taxes $97,000103,600$ Accounts payable $$27,400$ $$28,000$ $$-600$

Income taxes expense $(29,100)(31,080)$ Accrued liabilities $6,0005,0001,000$

Net income $$67,900$ $$72,520$ Income taxes payable $2,4009,000-6,600$

Total current liabilities $35,80042,000-6,200$

C$.$ Utley Inc. Long term liabilities:

Statement of Retained Earnings Notes Payable $242,000180,00062,000$

For the year ended December $31,2018$ Total liabilities $277,800222,00055,800$

$20182017$

Ret. earnings, Jan. $1$ $$32,000$ $$0$ Stockholders' equity

Add: net income $67,90072,520$ Common stock, $$5$ par value $120,000120,0000$

Deduct: Dividends $(41,000)(40,520)$ Additional paid$-$in capital $30,00030,0000$

Increase in retained earnings $26,90032,000$ Retained earnings $58,90032,00026,900$

Ret. earnings, Dec. $31$ $$58,900$ $$32,000$ Total stockholders$$ equity $208,900182,00026,900$

Total liabilities and stockholders$$ equity $$486,700$ $$404,000$ $$82,700$

Other information:

Shares of common stock outstanding $24,00024,000$

Earnings per share $$2\mathrm{.}83$ $$3\mathrm{.}02$

Dividends per share $$1\mathrm{.}71$ $$1\mathrm{.}69$

Market price per share, common stock $$15$ $$12\backslash$table$[[$C$.$ Utley Inc.$],[$Partial Balance Sheet $($Vertical analysis$)],[$For the years ended December $31,2018$ and $2017],[$Liabilities$,2018,\%,2017,\%],[$Current liabilities:$],[$Accounts payable$],[$Accrued liabilities$],[$Income taxes payable$],[$Total current liabilities,$0,,0,],[$Notes payable,$242,000,,180,000,],[$Total liabilities,$242,000,,180,000,],[$Stockholders$\text{'}$ Equity$],[$Common stock, $$5$ par$],[$Additional paid$-$in capital$],[$Retained earnings$],[$Total stockholders' equity,$0,,0,],[$Total liabilities and stockholders' equity,$242,000,,180,000,]]$