M. Lieberthal Inc. Income Statement For years ended December 31, 2017 and 2018 Sales (all on credit) M. Lieberthal Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 2018 Change Cost of goods sold Gross margin 2017 $711,000 $675,000 (371.000) (304,000) 340,000 371,000 Current assets Cash $75,900 $35,700 $40,200 Accounts receivable (net) 46,000 38,000 8,000 Inventory 50,000 48,000 2,000 Prepaid expenses Depreciation expense 1,900 Other operating expenses Total operating 38,000 53,000 153.000 127.000 Other current assets 2.690 4,200 -2,300 4.100 -1.410 Total current assets 176,490 130,000 46,490 191,000 180,000 expenses Operating Income 149.000 191.000 Long-term Investments 89,000 62,000 27,000 Other Income (expenses) Plant assets 314,000 263,000 51,000 Interest expense (5,100) (3,800) Less: accumulated (80,400) (53,000) 27,400 depreciation Gain on sale of Investments Loss on sale of plant assets 7,000 4,900 Total other income (4.200) (5.000) (16.300) (3.900) Total plant assets Total assets 233.600 210.000 23.600 499.090 402.000 97.090 (expenses) Income before income 146,700 187100 taxes Income taxes expense (44.010) (56130) Net Income $102.690 $130.970 Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current Babilities $31,300 $32,000 $-700 3.600 3,000 600 3.500 13.000 9.500 38,400 48.000 -9,600 M. Lieberthal Inc. Statement of Retained Earnings For the year ended December 31, 2018 Long term liabilities Notes Payable 256,000 190,000 66,000 Total liabilities 294,400 238.000 56,400, 2018 2017 Ret earnings, Jan. 1 Add: net income Deduct Dividends $26,000 102,690 130,970 (62.000) (104.970) $0 Stockholders' equity Common stock, $5 par? 110,000 110,000 0 value Additional paid-in capital 28,000 28,000 0 Increase in retained 66.690 26.000 40.690 40.690 26,000 Retained earnings earnings Ret earnings, Dec. 31 $66.690 $26,000 Total stockholders' equity 204,690 164.000 40,690 Total liabilities and $499.090 $402.000 $97.090 stockholders equity