eBook The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 2011 Retained earnings, January 1 $3,704,000 $3,264,000 Net income $ 600,000 $ 550,000 Dividends: On preferred stock (10,000) (10,000) On common stock (100,000) (100,000) Increase in retained earnings $ 490,000 $ 440,000 Retained earnings, December 31 $4,194,000 $3,704,000 Marshall Inc Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 20Y2 20Y1 Sales $ 10,850,000 $10,000,000 Cost of goods sold (6,000,000) (5,450,000) Gross profit $ 4,850,000 $ 4,550,000 Selling expenses $ (2,170,000) $ (2,000,000) Administrative expenses (1,627,500) (1,500,000) Total operating expenses $(3.797,500) $ (3,500,000) Operating income $ 1,052,500 $ 1,050,000 Other revenue and expense: Other revenue 99,500 20,000 Other expense interest) (132,000) (120,000) Income before income tax expense $1,020,000 $ 950,000 Income tax expense (420,000) (400,000) Check My Work UML Tevenue and expensen Other revenue Other expense (interest) Income before income tax expense Income tax expense Net income 99,500 (132,000) $ 1,020,000 (420,000) $ 600,000 20,000 (120,000) $ 950,000 (400,000) $ 550,000