Instructions ons Instructions The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Eamings Statement For the Years Ended December 31, 20Y2 and 20Y1 201 202 1 2 Retained earnings, January 1 $3,264,000.00 $3,704,000.00 550,000.00 600,000.00 3Net income $3,814,000.00 $4,304,000.00 4 Total SDividends: $10,000.00 $10,00000 On preferred stock 6 100,000.00 100,000.00 On common stock $110,000.00 Total dividends $110,000.00 $4,194,000.00 9 Retained earnings, December 31 $3,704,000.00 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y1 20Y2 1 $10,000,000.00 $10,850,000.00 2 Sales 5,450,000.00 6,000,000.00 Cost of goods sold 3 $4,550,000.00 $4,850,000.00 4 Gross profit $2,170,000.00 $2,000,000.00 5 Selling expenses 1,500,000.00 1,627,500.00 6 Administrative expenses $3,500,000.00 $3,797,500.00 Total operating expenses 7 $1,052,500.00 $1,050,000.00 Income from operations 8 20,000.00 99,500.00 9 Other income $1,152,000.00 $1,070,000.00 10 120,000.00 132,000.00 11 Other expense (interest) $950,000.00 $1,020,000.00 Income before income tax 12 400,000.00 420,000.00 Income tax expense 13 $550,000.00 $600,000.00 14 Net income Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y1 20Y2 1 Assets 2 3 Current assets $950,000.00 $1,050,000.00 Cash 4 420,000.00 301,000.00 Marketable securities 5 500,000.00 585,000.00 Accounts receivable (net) 6 380,000.00 420,000.00 Inventories 7 20,000.00 108,000.00 Prepaid expenses $2,270,000.00 $2,464,000.00 Total current assets 9 800,000.00 800,000.00 10 Long-term investments 5,184,000.00 5,760,000.00 11 Property, plant, and equipment (net) $8,254,000.00 $9,024,000.00 12 Total assets Liabilities 13 $800,000.00 $880,000.00 14 Current liabilities Liabilities 13 $800,000.00 $880,000.00 14 Current liabilities 15 Long-term liabilities: $0.00 $200,000.00 Mortgage note payable, 6%, 16 3,000,000.00 Bonds payable, 4%, 3,000,000.00 17 $3,000,000.00 $3,200,000.00 Total long-term liabilities 18 $3,800,000.00 $4,080,000.00 19 Total liabilities Stockholders' Equity 20 $250,000.00 $250,000.00 21 Preferred 4% stock, $5 par 22 Common stock, $5 par 500,000.00 500,000.00 4,194,000.00 3,704,000.00 23 Retained earnings $4,944,000.00 $4,454,000.00 24 Total stockholders' equity $9,024,000.00 $8,254,000.00 Total liabilities and stockholders' equity 25 Instructions ons Instructions The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. Marshall Inc. Comparative Retained Eamings Statement For the Years Ended December 31, 20Y2 and 20Y1 201 202 1 2 Retained earnings, January 1 $3,264,000.00 $3,704,000.00 550,000.00 600,000.00 3Net income $3,814,000.00 $4,304,000.00 4 Total SDividends: $10,000.00 $10,00000 On preferred stock 6 100,000.00 100,000.00 On common stock $110,000.00 Total dividends $110,000.00 $4,194,000.00 9 Retained earnings, December 31 $3,704,000.00 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y1 20Y2 1 $10,000,000.00 $10,850,000.00 2 Sales 5,450,000.00 6,000,000.00 Cost of goods sold 3 $4,550,000.00 $4,850,000.00 4 Gross profit $2,170,000.00 $2,000,000.00 5 Selling expenses 1,500,000.00 1,627,500.00 6 Administrative expenses $3,500,000.00 $3,797,500.00 Total operating expenses 7 $1,052,500.00 $1,050,000.00 Income from operations 8 20,000.00 99,500.00 9 Other income $1,152,000.00 $1,070,000.00 10 120,000.00 132,000.00 11 Other expense (interest) $950,000.00 $1,020,000.00 Income before income tax 12 400,000.00 420,000.00 Income tax expense 13 $550,000.00 $600,000.00 14 Net income Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y1 20Y2 1 Assets 2 3 Current assets $950,000.00 $1,050,000.00 Cash 4 420,000.00 301,000.00 Marketable securities 5 500,000.00 585,000.00 Accounts receivable (net) 6 380,000.00 420,000.00 Inventories 7 20,000.00 108,000.00 Prepaid expenses $2,270,000.00 $2,464,000.00 Total current assets 9 800,000.00 800,000.00 10 Long-term investments 5,184,000.00 5,760,000.00 11 Property, plant, and equipment (net) $8,254,000.00 $9,024,000.00 12 Total assets Liabilities 13 $800,000.00 $880,000.00 14 Current liabilities Liabilities 13 $800,000.00 $880,000.00 14 Current liabilities 15 Long-term liabilities: $0.00 $200,000.00 Mortgage note payable, 6%, 16 3,000,000.00 Bonds payable, 4%, 3,000,000.00 17 $3,000,000.00 $3,200,000.00 Total long-term liabilities 18 $3,800,000.00 $4,080,000.00 19 Total liabilities Stockholders' Equity 20 $250,000.00 $250,000.00 21 Preferred 4% stock, $5 par 22 Common stock, $5 par 500,000.00 500,000.00 4,194,000.00 3,704,000.00 23 Retained earnings $4,944,000.00 $4,454,000.00 24 Total stockholders' equity $9,024,000.00 $8,254,000.00 Total liabilities and stockholders' equity 25