The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutio AUTOMOTIVE SOLUTIONS INC. Comparative Income Statement For the Years Ended December 31, 20Y8 and 20Y7 Sales 20Y8 20Y7 $10,000,000 $ 9,400,000 (5,350,000) Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Operating income Other revenue and expense: Other revenue Other expense (interest) $ 4,650,000 $ (2,000,000) (1,500,000) $ (3,500,000) $ 1,150,000 (4,950,000) $ 4,450,000 $(1,880,000) (1,410,000) $(3,290,000) $ 1,160,000 150,000 (170,000) $900,000 140,000 (150,000) $ 1,150,000 (225,000) $925,000 Income before income tax $ 1,130,000 Income tax expense Net income (230,000) AUTOMOTIVE SOLUTIONS INC. Comparative Statement of Stockholders' Equity For the Years Ended December 31, 20Y8 and 20Y7 20Y8 20Y7 Preferred Stock Common Stock Balances, Jan. 1 $500,000 $500,000 Retained Earnings $5,375,000 Preferred Common Stock Stock Retained Earnings $500,000 $500,000 $4,545,000 Net income 900,000 925,000 Dividends: Preferred stock (45,000) (45,000) Common stock (50,000) (50,000) Balances, Dec. 31. $500,000 $500,000 $6,180,000 $500,000 $500,000 $5,375,000