make some initial observations about the company, Milavec Financial Statements below and come up with at least 3 observations about the company using the statements below ( ex -by looking at the Income Statement you can see that the company is currently operating profitably.)

2017 $800,000 MILAVEC COMPANY Income Statements and Statements of Retained Earnings For the Years Ending December 31 2018 Sales $900,000 Cost of goods sold Beginning inventory 43,000 Purchases 637,000 Goods available for sale 680,000 Ending inventory 70,000 Cost of goods sold 610,000 Gross margin 290,000 Operating expenses 248,000 Income before taxes 42,000 Income taxes 17,000 Net income 25,000 Plus: Retained earnings, beginning balance 137,000 Less: Dividends Retained earnings, ending balance $162,000 40,000 483,000 523,000 43,000 480,000 320,000 280,000 40,000 18,000 22,000 130,000 15,000 $137,000 MILAVEC COMPANY Balance Sheets As of December 31 2018 2017 Assets Cash Marketable securities Notes receivable Accounts receivable Merchandise inventory Prepaid expenses Property, plant, and equipment (net) A Total assets $ 20,000 20,000 4,000 50,000 70,000 4,000 $ 17,000 22,000 3,000 56,000 43,000 4,000 340,000 $508,000 310,000 $455,000 $ 40,000 2,000 4,000 100,000 $ 38,000 3,000 2,000 100,000 Liabilities and Stockholders' Equity Accounts payable Salaries payable Taxes payable Bonds payable, 8% Preferred stock, 6%, $ 100 par, cumulative Common stock, $10 par Retained earnings Total liabilities and stockholders' equity 50,000 150,000 162,000 50,000 125,000 137,000 $508,000 $455,000