Measures of liquidity, Solvency and Profitability The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel common stock was $119.70 on December 31, 2012. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 2011 Retained earnings, January 1 Net income Dividends On preferred stock On common stock Increase in retained earnings Retained earnings, December 31 Sales Cost of goods sold Gross profit Selling expenses 2012 2011 $5,375,000 $4,545,000 $900,000 $925,000 (45,000) (45,000) (50,000) (50,000) $805,000 $830,000 $6,180,000 $5,375,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2012 and 2011 2012 2011 $10,000,000 $9,400,000 (5,350,000) (4,950,000) $4,650,000 $4,450,000 $(2,000,000) $(1,880,000) 1.500.000) 10.000