Royal Bros., Inc. Question This homework question has FOUR Requirements to be OWN answered Part 1: Royal Bros., Inc. Question The Comparative Balance Sheets for Year 1 and Year 2 and the Year 2 Income Statement for Royal Bros., Inc. are as follows: Assets Royal Bros, Inc. Balance Sheet December 31, Year 1 December 31, Year 2 Cash $ 54,000 $ 180,000 Accounts Receivable 540,000 360,000 Inventories 720,000 1,080,000 Property, Plant, and Equipment (net) 2,646,000 2.520.000 Total Assets $3.960,000 $4,140,000 Liabilities and Shareholders' Equity Accounts Payable $900,000 5% Mortgage Payable 1,494,000 $ 680,400 1,440,000 Common Stock 1,080,000 1,080,000 Retained Earnings 486,000 939,600 Total Liabilities and Shareholders' Equity $3.960,000 $4,140,000 Royal Bros, Inc. Income Statement Sales on Account 2 For the Year Ended December 31, Year 2 $3,240,000 Less Expenses: Cost of Goods Sold Salary Expense Depreciation Expense Interest Expense Income before Income Taxes Income Tax Expense at 35 percent Net Income (1,800,000) (594,000) (126,000) (72,000) $ 648,000 (226,800) $421.200