Table 1 Parent , Inc Actual Financial Statements for 2012 and Subsidiary Corporation Projected Financial Statements for 2013 Parent Subsidia sales Cost of Goods Sold Operating Expenses Income before Taxes Income Tax Expense Net Income Retained Earnings January 1 Add Net Income Deduct Dividends Retained Earnings December 31 Cash Accounts Receivable Inventor Property, Plant and Equipment Accumulated Depreciation Total Assets Accounts Payable Common Stock* Paid-in Capital in Excess of Par Retained Earnings Total Liabilities & Equities *Parent: $12.50 par value. Subsidiary: 2012 Actual $ 800,000 (485,000 (219,000) 96,000 (38,400) 57,600 23,000 57,600 38,000 42,600 36,200 39,000 26,000 673,000 490,000 284,200 44,600 190,000 7,000 42,600 $ 284,200 2013 Proected $ 100,000 (55,000 (10,000) 35,000 (14,000) 21,000 14,500 21,000 7,000 28,500 19,500 13,000 12,000 213,000 28,000 229,500 21,000 150,000 30,000 28,500 $ 229,500 $75 par value