Milavec Company Income Statement and Statement of Retained Earnings For the Years Ending Year 5 Year 4 Year 3 Sales Cost of Goods Sold $ 1,600,000 $ 900,000 $ 800,000 Beginning Inventory $ 70,000 $ 43,000 $ 40,000 Purchases $ 1,078,000 $ 637,000 $ 483,000 Goods available for sale 1,148,000 $ 680,000 $ 523,000 Ending Inventory $ 60,000 $ 70,000 $ 43,000 Cost of Goods Sold $ 1,088,000 $ 610,000 $ 480,000 Gross Margin $ 512,000 $ 290,000 $ 320,000 Operating Expenses $ 480,000 $ 248,000 $ 280,000 Income before taxes $ 32,000 $ 42,000 $ 40,000 Income taxes $ 12,800 $ 17,000 $ 18,000 Net Income $ 19,200 $ 25,000 $ 22,000 Plus: Beg bal Retained Earnings $ 162,000 $ 137,000 $ 130,000 Less: Dividends $ 6,000 $ $ 15,000 Ending Balance Retained Earnings $ 175,200 $ 162,000 $ 137,000 Milavec Company Balance Sheet As of December 31 Year 5 Year 4 Year 3 Assets Cash $ 36,200 $ 20,000 $ 17,000 Marketable Securities $ 20,000 $ 20,000 $ 22,000 Notes Receivable $ $ 4,000 $ 3,000 Accounts Receivable $ 65,000 $ 50,000 $ 56,000 Merchandise Inventory $ 60,000 $ 70,000 $ 43,000 Prepaid Expenses $ $ 4,000 $ 4,000 Property Plant and Equipment (net) $ 340,000 $ 340,000 $ 310,000 Total Assets $ 521,200 $ 508,000 $ 455,000 Liabilities and Stockholder's Equity Accounts Payable $ 40,000 $ 40,000 $ 38,000 Salaries Payable $ 2,000 $ 2,000 $ 3,000 Taxes Payable $ 4,000 $ 4,000 $ 2,000 Bonds Payable, 8% $ 100,000 $ 100,000 $ 100,000 Preferred Stock, 6%, $100 par, cumulative $ 50,000 $ 50,000 $ 50,000 Common Stock, $10 par $ 150,000 $ 150,000 $ 125,000 Retained Earnings $ 175,200 $ 162,000 $ 137,000 Total Liabilities and Stockholders' Equity $ 521,200 $ 508,000 $ 455,000