Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 2012 2011 Retained earnings, January 1 $3,704,000 $3,264,000 $600,000 $550,000 Dividends: On preferred stock (10,000) (10,000) On common stock (100,000) (100,000) Increase in retained earnings $450,000 $440,000 Retained earnings, December 31 $4,194,000 $3,704,000 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and Sales Cast of goods sold Gross profit Seting expenses 20Y1 2012 2011 $ 10,850,000 $10,000,000 16,000,000) (5,450,000) $4,850,000 $4,550,000 $(2,170,000) $2,000,000) (1.627,500) (1,500,000) Administrative expenses Total operating expenses Operating income Other revenue and expense Other revenue $13,797,500) $(3,500,000) $1,052,500 $1,050,000 99.500 20,000 Other expense (interest) (132,000) (120,000) Income before income tax expense $1,020,000 $950,000 Income tax expense (420,000) (400,000) Net income $600.000 $550,000 Marshall Inc. Comparative Balance Sheet December 31, 2012 and 20Y1 Assets 2012 2011 Current assets Cash Marketable securities $1,050,000 $950,000 301,000 420,000 Accounts receivable (net) Inventories 585,000 500,000 420,000 380,000 Prepaid expenses 308,000 20,000 Total current assets $2,464,000 $2,270,000 Long-term investments 800,000 800,000 Property, plant, and equipment (net) 5,760,000 5,184,000 $9.024,000 $8.254,000 $880,000 800,000 Long-term labies Mortgage note payable,6% $200,000 10 Bonds payable, 4% 3,000,000 3,000,000 $3,200,000 $3,000,000 $4,080,000 $3,800,000 Stockholders' Equity Preferred 4% stock, 15 par $250,000 $250,000 Common stock, $5 par 500,000 500,000 Retained earnings 4,194,000 3,704,000 Total stockholders' equity Total abilities and stockholders' equity $4,944,000 $4,454,000 $9,024,000 $8.254,000