Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 65 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 1 20Y2 $ 2,701,700 638,400 $ 3,340,100 20Y1 $ 2,277,100 466,400 $ 2,743,500 Net income Total Dividends On preferred stock On common stock Total dividends Retained earnings, December 31 $ 9,800 32,000 $ 41,800 $ 9,800 32,000 $ 41,800 $ 3,298,300 $ 2,701,700 Sales Cost of goods sold Gross profit Selling expenses Marshall Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 20Y1 Administrative expenses Total operating expenses Income from operations Other income Other expense (interest) Income before income tax Income tax expense Net income 20Y2 $ 4,276,340 1,511,100 $ 2,765,240 $ 965,100 822,120 1,787,220 $ 978,020 51,480 $ 1,029,500 304,000 $ 725,500 87,100 $ 638,400 20Y1 $ 3,940,000 1,390,210 $ 2,549,790 $ 1,193,480 700,940 1,894,420 $655,370 41,830 $ 697,200 167,200 $530,000 63,600 $466,400