Financial statements for Vernon Company follow. VERNON COMPANY Balance Sheets As of December 31 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 Year 4 Year 3 $ 24,500 21,700 $ 20,500 7,700 58,000 50,000 143,000 151,000 27,000 12,000 274,200 241,200 32,000 25,000 295,000 280,000 27,000 22,000 $628,200 $568,200 $ 35,200 $ 10,200 103,800 90,000 26,000 20,000 165,000 120,200 Noncurrent liabilities Bonds payable 150,000 150,000 Other 32,000 27,000 Total noncurrent liabilities 182,000 177,000 Total liabilities 347,000 297,200 Stockholders' equity Preferred stock, (par value $10, 5% cumulative, non-participating; 7,000 shares authorized and issued) 70,000 70,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings 70,000 70,000 141,200 131,000 Total stockholders' equity 281,200 271,000 Total liabilities and stockholders' equity $628,200 $568,200