Measures of liquidity, Solvency, and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $49 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 Total Dividends: On preferred stock On common stock Total dividends Retained earnings, December 31 20Y2 20Y1 $883,550 $752,550 196,000 154,100 $1,079,550 $906,650 $7,000 $7,000 16,100 16,100 $23,100 $1,056,450 $23,100 $883,550 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $1,270,200 $1,170,270 Cost of goods sold 475,230 437,210 Gross profit $794,970 $733,060 Selling expenses $274,000 $332,140 Administrative expenses 233,410 195,060 Total operating expenses $507,410 $527,200 Income from operations $287,560 $205,860 Other revenue 15,140 13,140 $302,700 $219,000 Other expense (interest) 80,000 44,000 Income before income tax $222,700 $175,000