property worth $252,000. It had $129.000 in finished goods. 9102.500 in raw materials, and S41.000 in work in progress. lis production equipment was worth $444,000 when new partially paid for by a large government loan due to be paid back in three , in barikworking capital . Ils word it The Il also years) but had accumulated a total of S232,000 in depreciation-$33,000 worth last month. The company has investors who put up $97,DoD for their ownership. It has been reasonably profitable, this month the gross income from sales was $223.000, and the costs associated with sales was only $41,500. Expenses were also relatively low salaries were $44,000 last month, while the other expenses were depreciation, maintenance at $1440, advertising at 53850, and insurance at $30. In spite of $32,909 in accrued taxes (Paarl says taxes at 50 percent), the company had retained earnings of $131.000 Construct a balance sheet (as of the end of this month and Income statement for this month for Paarl Manufacturing. Should the company release some of its retained eamings through dividends at this time? First, construct a balance sheet as of the end of this month. Start with the assets section of the balance sheet and then the liabilities and owners' equity sections. Balance Sheet Paarl Manufacturing As of the end of the month Assets Current assets Total Current Assets Long-term assets Total Long-Term Assets Total assets Long-term assets Total Long-Term Assets Total assets Liabilities and Owners' Equity Current Liabilities Total Current Liabilities Long-term Liabilities Total Long-Term Liabilities Total Liabilities Owners' Equity Total Owners' Equity Total Liabilities and Owners' Equity Now, construct an income statement for this month. (Use parentheses or a minus sign for a net loss.) Income Statement Paarl Manufacturing Income Statement Paarl Manufacturing for the month ended Revenues Net income from sales Expenses Total expenses Income before taxes Taxes Net income Now determine whether the company should release some of its retained earnings through dividends at this time by calculating the equity ratio. The equity ratio is 0 (Round to three decimal places as needed.) Should the company release some of its retained earnings through dividends at this time? O A. Since the equity ratio is low, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. O B. Since the equity ratio is low, the company has too much debt. The company should not issue dividends so it can reduce its debt. O C. Since the equity ratio is high, the company has a low amount of debt. The company should issue dividends to make its shareholders happy. OD. Since the equity ratio is high, the company has too much debt. The company should not issue dividends so it can reduce its debt