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 Net income Total Dividends On preferred stock On common stock Total dividends Retained earnings, December 31 20Y2 20Y1 $ 1,934,150 444,000 $ 1,632,150 334,300 $ 2,378,150 $ 1,966,450 $ 7,000 25,300 $ 32,300 $ 7,000 25,300 $ 32,300 $2,345,850 $ 1,934,150 Sales Cost of goods sold Gross profit Selling expenses Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 $ 2,538,210 889,140 $ 1,649,070 $ 553,720 471,680 1,025,400 Administrative expenses Total operating expenses Income from operations Other income $ 623,670 32,830 20Y1 $2,338,550 818,010 $ 1,520,540 $ 683,160 401,220 1,084,380 $436,160 27,840 Other expense (interest) Income before income tax Income tax expense Net income $ 656,500 152,000 $ 504,500 60,500 $444,000 $464,000 84,000 $ 380,000 45,700 $334,300