R. Allen Inc. Income Statement For years ended December 31, 2017 and 2018 R. Allen Inc. Comparative Balance Sheets December 31, 2018 and 2017 2017 2018 Change 2018 Sales (all on credit) 2017 $528,000 $475,000 Current assets: Cash $50,270 $31,700 $18,570 Accounts receivable Cost of goods sold Gross margin (321,000) (263,000) 207,000 212,000 38,000 32,000 6,000 (net) Inventory 44,000 42,000 2,000 Prepaid expenses 1,200 2,700 -1,500 Depreciation expense 37,000 51,000 Other current assets 1,700 2,600 -900 Other operating 114,000 95,000 Total current assets 135,170 111,000 24,170 expenses Total operating expenses Operating income Other income 151,000 146,000 56,000 66,000 Long-term Investments 81,000 56,000 25,000 Plant assets 307,000 257,000 50,000 (expenses) Interest expense (4,700) (3,500) Gain on sale of investments Loss on sale of plant assets Total other income 5,500 Less: accumulated depreciation 3,900 Total plant assets (77,800) (51,000) 26,800 229,200 206,000 23,200 (2,700) (3,200) Total assets 445,370 373,000 72,370 (12,900) (2,800) (expenses) Income before income taxes Income taxes expense Net income Current liabilities: 54,100 63,200 Accounts payable $25,500 $26,000 $-500 (16,230) (18,960) Accrued liabilities 3,600 3,000 600 $37,870 $44,240 Income taxes payable Total current liabilities 1,400 5,000 -3,600 30,500 34,000 -3,500 R. Allen Inc. Long term liabilities: Statement of Retained Earnings For the year ended December 31, 2018 Notes Payable 236,000 175,000 61,000 Total liabilities 266,500 209,000 57,500 2018 2017 Ret. earnings, Jan. 1 Add: net income Deduct: Dividends Increase in retained earnings $26,000 37,870 44,240 (23,000) (18,240) $0 Stockholders' equity Common stock, $5 par 110,000 110,000 value Additional paid-in capital 28,000 28,000 0 14,870 26,000 Retained earnings 40,870 26,000 14,870 Ret. earnings, Dec. 31 $40,870 $26,000 Total stockholders' equity 178,870 164,000 14,870 Total liabilities and stockholders' equity $445,370 $373,000 $72,370 Other information: Shares of common stock outstanding 22,000 22,000 Earnings per share $1.72 $2.01 Dividends per share Market price per $1.05 $0.83 share, common $14 $12 stock