Income Statement For the Year Ended December 31, 20X2 Statement of Retained Earnings For the Year Ended December 31, 20X2 3,000,000 2,544,000 Retained earnings, balance, January 1,20X2 S730,000 Add: Earnings availableto common stockholders, 20x2 120,000 Deduct: Cash dividends dedared and paidin 20X2 100,000 S760,000 Cost ofgoods sold Sellingandadministrative expense Depreciation expense 90,000 100,000 266,000 66,000 Retained earnings, balance, December 31,20x2 Operating income Earnings before taxes Earnings after taxes Interest expense Taxes Comparative Balance Sheets For 20X2 and 20X1 Year Year-End 20X2 20X1 Assets Current assets S 50,000 350,000 300,000 S 55,000 315,000 215,000 25,000 610,000 receivable (net) Inventony Prepaid expenses Total current assets 700,000 Gross plant and equipment Less: Accumulated depreciation Net plantand equipment S1,800,000 500,000 S1,470,000 400,000 1,300,000 S 2,000,000 1,070,000 $1,680,000 Liabilities and Stockholders' Equity Current liabiities: Accounts payable Notes payable Accrued expenses Total currentliabiities S 60,000 100,000 40,000 S 30,000 60,000 130,000 S 220,000 Longterm liabiities: Bonds payabe, 2002 Total liabilties 800,000 1,100,000 580,000 Stockholders' equity Preferred stock, S100 par value Commonstock, S1 par value Capital paid in excess ofpar Retained earnings Total stockholders' equity 50,000 100,000 750,000 50,000 100,000 730,000 Total liabilities and stockholders' equity 2,000,000 $1,680,000 Cash Identity Stmt Cash Flow From Assets Cash Flow to Creditors Interest Expense Less: Net New Borrowing (LTD) Operating Cash Flow: Cash Flow to Creditors +Depreciation - Taxes Operating Cash Flow Less: Net Capital Spending Ending Fixed Assets Beginning Fixed Assets +Depreciation Cash Flow to Owners Dividends(PS) Dividends(CS) Less: Net New Borrowing from Owners Net Capital Spending Cash Flow to Owners Less: Change in Net Working Capital Ending NWC-Beginning NWO CASH FLOW FROM ASSETS CF TO CREDITOR+CF TO OWNERS