The condensed financial statements of Pharoah Company for the years 2020-2021 are presented below: Pharoah Company Comparative Balance Sheets As of December 31, 2020 and 2021 2021 2020 Cash $692,000 $42,500 Accounts receivable (net) 500,000 421,000 Inventories 576,000 516,000 Plant and equipment 2,710,000 1,609,000 Accumulated depreciation (382,000 ) (221,000 ) $4,096,000 $2,367,500 Accounts payable $516,000 $238,000 Dividends payable -0- 69,500 Bonds payable 612,000 -0- Common stock ($10 par) 2,342,000 1,658,000 Retained earnings 626,000 402,000 $4,096,000 $2,367,500