The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2.

Marshall Inc.

Comparative Retained Earnings Statement

For the Years Ended December 31, 20Y2 and 20Y120Y220Y1Retained earnings, January 1$3,704,000$3,264,000Net income600,000550,000Dividends:On preferred stock(10,000)(10,000)On common stock(100,000)(100,000)Retained earnings, December 31$4,194,000$3,704,000

Marshall Inc.

Comparative Income Statement

For the Years Ended December 31, 20Y2 and 20Y120Y220Y1Sales$10,850,000$10,000,000Cost of merchandise sold6,000,0005,450,000Gross profit$4,850,000$4,550,000Selling expenses$2,170,000$2,000,000Administrative expenses1,627,5001,500,000Total operating expenses$3,797,500$3,500,000Income from operations$1,052,500$1,050,000Other revenue and expense:Other revenue99,50020,000Other expense (interest)(132,000)(120,000)Income before income tax expense$1,020,000$950,000Income tax expense420,000400,000Net income$600,000$550,000

Marshall Inc.

Comparative Balance Sheet

December 31, 20Y2 and 20Y120Y220Y1AssetsCurrent assets:Cash$1,050,000$ 950,000Marketable securities301,000420,000Accounts receivable (net)585,000500,000Inventories420,000380,000Prepaid expenses108,00020,000Total current assets$2,464,000$2,270,000Long-term investments800,000800,000Property, plant, and equipment (net)5,760,0005,184,000Total assets$9,024,000$8,254,000LiabilitiesCurrent liabilities$880,000$800,000Long-term liabilities:Mortgage note payable, 6%$200,000$0Bonds payable, 4%3,000,000$3,000,000Total long-term liabilities$3,200,000$3,000,000Total liabilities$4,080,000$3,800,000Stockholders' EquityPreferred 4% stock, $5 par$250,000$250,000Common stock, $5 par500,000500,000Retained earnings4,194,0003,704,000Total stockholders' equity$4,944,000$4,454,000Total liabilities and stockholders' equity$9,024,000$8,254,000