The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $ 56 on December 31, 2012. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 Retained earnings, January 11 Net income Dividends: On preferred stock On common stock Retained earnings, December 31 Sales 20Y2 20Y1 $3,894,575 $3,293,225 864,000 674,500 (14,000) (14,000) (59.150) (59,150) $4,685,425 $3,894,575 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 Cost of merchandise sold Gross profit Selling expenses Administrative expenses Total operating expenses Income from operations 20Y2 20Y1 $5.254,540 $4,841,220 1,757,110 $3,497,430 1,616,540 $3,224,680 $1,224,890 $1,476.060 1,043,430 866,900 $2,268,320 $2,342,960 $1.229.110 $881.720 Other revenue and expense: Other revenue 64,690 56,280 Other expense (interest) (312,000) (172,000) Income before income tax expense $981,800 $766,000 Income tax expense 117,800 91.500 Net income $864,000 $674,500