R. Howard Inc. Income Statement For years ended December 31, 2017 and 2018 R. Howard Inc. Comparative Balance Sheets December 31, 2018 and 2017 2017 2018 Change 2018 Sales (all on credit) Cost of goods sold Gross margin 2017 $595,000 $536,000 (339,000) (278,000) 256,000 258,000 Current assets: Cash $65,470 $37,500 $27.970 Accounts receivable (net) 38,000 32,000 6,000 Inventory 44,000 42,000 2,000 Prepaid expenses 1,500 3,300 -1,800 Depreciation expense Other operating 37,000 51,000 126,000 105,000 Other current assets 2,100 3,200 -1,100 Total current assets 151,070 118,000 33,070 expenses Total operating 163.000 156,000 expenses Operating income 93.000 102,000 Long-term Investments 81,000 56,000 25,000 Other income Plant assets 307,000 257,000 50,000 (expenses) Interest expense Less: accumulated (4,700) (3,500) (77,800) (51,000) 26,800 depreciation Gain on sale of 6,100 4,300 Total plant assets 229,200 206,000 23,200 investments Loss on sale of plant assets (3,300) (4,000) Total assets 461,270 380,000 81,270 Total other income (14,100) (3,200) (expenses) Current liabilities: Income before income 91,100 98,800 Accounts payable $25,500 $26,000 $-500 taxes Income taxes expense (27.330) (29,640) Accrued liabilities 4,800 4,000 800 Net income $63.770 $69,160 Income taxes payable 2,200 8.000 -5,800 Total current liabilities 32,500 38.000 -5,500 R. Howard Inc. Statement of Retained Earnings For the year ended December 31, 2018 Long term liabilities: Notes Payable 236,000 175,000 61,000 Total liabilities 268,500 213,000 55,500 2018 2017 Ret. earnings, Jan. 1 Add: net income Deduct: Dividends Increase in retained earnings $29,000 $0 Stockholders' equity Common stock, $5 par 63,770 69,160 (38,000) (40,160) 110,000 110,000 value Additional paid-in capital 28,000 28,000 0 25,770 29,000 Retained earnings 54,770 29.000 25,770 Ret. earnings, Dec. 31 $54,770 $29,000 Total stockholders' equity 192,770 167,000 25,770 Total liabilities and $461,270 $380,000 $81,270 stockholders' equity Other information: Shares of common 22,000 22,000 stock outstanding Earnings per share $2.9 $3.14 Dividends per share $1.73 $1.83 Market price per share, common stock $15 $12