East Cost Yachts 2017 Balance Sheet Current Assets Current liabilities Cash and equivalents $11,119,700 Accounts payable $44,461,550 Accounts receivable 18,681,500 Accrued expenses 6,123,200 Inventory 20,149,650 Total current liabilities $50,584,750 Other 1,172,200 Total current assets $51,123,050 Fixed assets Long-term debt $169,260,000 Property, plant and equipment $457,509,600 Total long-term liabilities $169,260,000 Less accumulated depreciation (113,845,900) Net property, plant and equipment $343,663,700 Intangible assets and others 6,772,000 Stockholders' equity Total fixed assets $350,435,700 Preferred stock $1,970,000 Common stock 37,583,700 Capital surplus 28,116,300 Accumulated retained earnings 161,564,000 Less treasury stock (47,520,000) Total equity $181,714,000 Total assets $401,558,750 Total liabilities and shareholders' equity $401,558,750

East Cost Yachts
2017 Income Statement
Sales	$611,582,000
Cost of Goods Sold	431,006,000
Selling, general & admin expenses	73,085,700
Depreciation	19,958,400
EBIT	$87,531,900
Interest expense	11,000,900
EBT	$76,531,000
Taxes	30,612,400
Net Income	$45,918,600
Dividends	$17,374,500
Retained Earnings	$28,544,100

1. East Coast Yachts uses a small percentage of preferred stock as a source of financing. In calculating the ratios for the company, should preferred stock be included as part of the company's total equity? (do not calculate ratios question just needs to be answered)