S. Victorino Inc. Income Statement For years ended December 31, 2017 and 2018 S. Victorino Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Change 2018 Sales (all on credit) Cost of goods sold Gross margin 2017 $725,000 $689,000 (375,000) (308,000) 350,000 381,000 Current assets: Cash $93,100 $51,500 $41,600 Accounts receivable (net) 48,000 40,000 8,000 Inventory 53,000 50,000 3,000 Prepsid expenses 1,900 4,300 -2,400 Depreciation expense Other operating 38,000 53,000 156,000 129,000 Other current assets 2750 4.200 -1,450 Total current assets 198,750 150,000 48,750 expenses Total operating 194,000 182,000 expenses Operating income 156,000 199,000 Long-term Investments 92,000 64,000 28,000 Other income (expenses) Interest expense Gain on sale of Plant assets 317,000 265,000 52.000 Less: accumulated (5,300) (3,900) depreciation (80.400) (53,000) 27.400 investments 7,100 5,000 Total plant assets 236,600 212.000 24,600 Loss on sale of plant assets (4.300) (5.200) Total assets 527.350 426,000 101,350 Total other income (expenses) (16,700) (4.100) Income before income 153,500 194,900 taxes Current liabilities: Accounts payable $33,300 $34,000 $-700 Income taxes expense Net income (46.050) (58,470) Accrued liabilities 4,800 4,000 800 $107,450 $136,430 Income taxes payable 3.800 14.000 -10,200 Total current liabilities 41,900 52,000 10,100 S. Victorino Inc. Long term liabilities: Statement of Retained Earnings For the year ended December 31, 2018 Notes Payable 263,000 195,000 68,000 Total liabilities 304,900 247,000 57,900 2018 2017 Ret earnings, Jan. 1 Add: net income Deduct: Dividends Increase in retained earnings $29,000 107,450 136,430 (64,000) (107,430) 43,450 29,000 $0 Stockholders' equity Common stock, $5 par volue 120,000 120,000 Additional paid-in capital 30,000 30,000 Retained earnings 72,450 29.000 43.450 Ret earnings, Dec. 31 $72,450 $29,000 Total stockholders' equity 222450 179,000 43.450 Total liabilities and stockholders' equity $527,350 $426,000 $101,350 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per 24,000 24,000 $4.48 $5.68 $2.67 $4.48 $16 share, common stock $12