Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 56 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2012 and 20Y1 Retained earnings, January 1 Net income Dividends: On preferred stock On common stock Retained earnings, December 31 2012 20Y1 $3,894,575 $3,293,225 864,000 674,500 (14,000) (14,000) (59.150) (59,150) $4,685,425 $3,894,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 13 2012 20Y1 Sales $5.254.540 $4,841,220 Cost of merchandise sold 1,757,110 1,616,540 Gross profit $3,497,430 $3,224,680 Selling expenses $1,224.890 $1,476,060 Administrative expenses 1.043,430 866,900 Total operating expenses $2.268,320 $2,342,960 Income from operations $1,229,110 $881,720 Other revenue and expense: Other revenue 64,690 Other expense (interest) (312,000) 36,280 (172,000) Income before income tax expense $981,800 $766,000 Income tax expense 117,800 91,500 Net income $864,000 $674,500 Marshall Inc.