sheet that is provided. Nineteen measures of solvency and profitability answer The comparative financial statements of Stargel Inc. are as follows. The market price of Stargel Inc. comimon stock was $119.70 on December 31, 2014. Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Retained earnings, January 1 Add net income for year Total Deduct dividends: 275,000 $6,275,000 $5,470,000 On common stock... 50,000 50,000 $ 95,000 95,000 56,180,000 $5375.000 Total Retained earnings, December 31 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 Sales (all on account) Sales returns and allowances $10,050,000 $9450,000 50,000 $10,000,000 $9,400,000 Gross profit Selling expenses Administrative expenses 3,500,000 $3,290,000 3,500,000 1,150,000 150,000 1,300,000 170,000 Income from operations.... Other income $1,1 Other expense (interest). --.. Income before income tax Income tax expense Net income. . 150,000 230,000 $ 900,000 225,000 925,000 Stargel Inc. Comparative Balance Sheet December 31, 2014 and 2013 Dec. 31, 2014 Dec. 3T, 2013 Assets Current assets: 500,000 400,000 1,000,000 510,000 950,000 229,000 $3,089,000 2,300,000 Cash Marketable securities 1,010,000 740,000 1,190,000 250,000 $3,690,000 2,350,000 3,740,000 $9,780,000 Prepaid expenses Long-term investments Property, plant, and equipment (net) Total assets $8,755,000 Liabilities $900,000 Current liabilities... Long-term liabilities: $ 200,000 0 Mortgage note payable, 8%, due 2019,-. ,500,000 $1,700,000 $1,500,000 $2,600,000 2380,000 Total long-term liabilities Stockholders' Equity 5 500000 5 S5000 500,000 500,000 500,000 Common stock, $5 par Retained earnings 5,375 6,180,000 7,180,000 $6,375000 . . . Total stockholders' equity Total liabilities and stockholders' eauitv 9,780 oo 3,755,00