Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20 Y1 \begin{tabular}{|c|c|c|} \hline & 20Y2 & 20Y1 \\ \hline Retained earnings, January 1 & $5,375,000 & $4,545,000 \\ \hline Net income..... & 900,000 & 925,000 \\ \hline Total. & $6,275,000 & $$,470,000 \\ \hline \multicolumn{3}{|l|}{ Dividends: } \\ \hline On preferred stock...... & $45,000 & $45,000 \\ \hline On common stock........... & 50,000 & 50,000 \\ \hline Total dividends............... & $95,000 & $95,000 \\ \hline Retained earnings, December 31 & $6,180,000 & $5,375,000 \\ \hline \end{tabular} Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 \begin{tabular}{|c|c|c|} \hline & 20Y2 & 20Y1 \\ \hline Sales. & $10,000,000 & $9,400,000 \\ \hline Cost of goods sold. ........ & 5,350,000 & 4,950,000 \\ \hline Gross profit. & $4,650,000 & $4,450,000 \\ \hline Selling expenses... & $2,000,000 & $1,880,000 \\ \hline Administrative expenses............. & 1,500,000 & 1,410,000 \\ \hline Total operating expenses ...... & $3,500,000 & $3,290,000 \\ \hline Income from operations .......... & $1,150,000 & $1,160,000 \\ \hline \multirow{2}{*}{ Other income.} & 150,000 & 140,000 \\ \hline & $1,300,000 & $1,300,000 \\ \hline Other expense (interest).. & 170,000 & 150,000 \\ \hline Income before income tax... & $1,130,000 & $1,150,000 \\ \hline Income tax expense.. & 230,000 & 225,000 \\ \hline Net income. & $900,000 & $925,000 \\ \hline \end{tabular} Stargel Inc. Comparative Balance Sheet December 31, 20 Y2 and 20Y1 \begin{tabular}{|c|c|c|} \hline & 20Y2 & 20Y1 \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current assets: } \\ \hline Cash & $500,000 & $400,000 \\ \hline Marketable securities........... & 1,010,000 & 1,000,000 \\ \hline Accounts receivable (net) & 740,000 & 510,000 \\ \hline & 1,190,000 & 950,000 \\ \hline Prepaid expenses ......... & 250,000 & 229,000 \\ \hline Total current assets..... & $3,690,000 & $3,089,000 \\ \hline Long-term investments...... & 2,350,000 & 2,300,000 \\ \hline Property, plant, and equipment (net). & 3,740,000 & 3,366,000 \\ \hline Total assets .............. & $9,780,000 & $8,755,000 \\ \hline \multicolumn{3}{|l|}{ Liabilities } \\ \hline Current liabilities..... & $900,000 & $880,000 \\ \hline \multicolumn{3}{|l|}{ Long-term liabilities: } \\ \hline Mortgage note payable, 10% & $200,000 & $ \\ \hline Bonds payable, 10%. & 1,500,000 & 1,500,000 \\ \hline Total long-term liabilities........ & $1,700,000 & $1,500,000 \\ \hline Total liabilities ........ & $2,600,000 & $2,380,000 \\ \hline \multicolumn{3}{|l|}{ Stockholders' Equity } \\ \hline Preferred $0.90 stock, $10 par. .............. & $500,000 & $500,000 \\ \hline Common stock, $5 par............... & 500,000 & 500,000 \\ \hline & 6,180,000 & 5,375,000 \\ \hline Total stockholders' equity & $7,180,000 & $6,375,000 \\ \hline Total liabilities and stockholders' equity. & $9,780,000 & $8,755,000 \\ \hline \end{tabular} Answers are entered in the cells with gray backgrounds. Cells with non-qray backqrounds are protected and cannot be edited. Al