JETER CORPORATION Income Statement For the Ye,r Ended December 31, 2010 Sales $ 4,180,000 Cost of goods sold 2,740,000 Gross profits 1,440,000 Selling and administrative expense 653,000 Depreciation expense 244,000 Operating income 543,000 Interest expense 82,700 Earnings before taxes 460,300 Taxes 191,000 Earnings after taxes 269,300 Preferred stock dividends 10,000 Earnings available to common stockholders $ 259,300 Shares outstanding 150,000 Earnings per share $ 1.73 Statement of Retained Earnings For the Year Ended December 31, 2010 Retained earnings, balance, January 1, 2010 $ 993,200 Add: Earnings available to common stockholders, 2010 259,300 Deduct: Cash dividends declared and paid in 2010 202,000 Retained earnings, balance, December 31, 2010 $ 1,050,500 Comparative Balance Sheets For 2009 and 2010 Year-End 2009 Year-End 2010 Assets Current assets: Cash $ 130,000 $ 94,000 Accounts receivable (net) 509,000 537,000 Inventory 648,000 661,000 Prepaid expenses 66,700 38,700 Total current assets 1,353,700 1,330,700 Investments (long-term securities) 97,300 86,400 Plant and equipment 2,370,000 3,100,000 Less: Accumulated depreciation 1,120,000 1,364,000 Net plant and equipment 1,250,000 1,736,000 Total assets $ 2,701,000 $ 3,153,100 Liabilities and Stockholders