[The following information applies to the questions displayed below.) The comparative financial statements for Prince Company are below Year 2 Year 1 $ 191,500 112.800 78,700 56,200 22.500 6,750 $ 15,750 $ 169,000 100,000 69,000 53,200 15,800 4,740 $11.060 Income statement Sales revenue Cost of goods sold Gross promit Operating expenses and interest expense Pretax income Income tax Net Income Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (9 interest) Common stock ($5 par value, 5,600 shares outstanding) Retained earnings Total abilities and stockholders equity $ 5,900 15,400 41,600 45,700 $ 108,600 $ 14,500 44,200 28,000 21.900 $ 108,600 $ 6,800 16 800 33 800 36,600 $ 94,000 $ 15,500 44.200 28,000 6,300 $ 94,000 PRINCE COMPANY Income Statement At December 31, Yoar 2 Increase (Decrease) Year 2 over Year 1 Amount Percent Sales revenue Cost of goods sold Gross profit Operating expenses and Interest expense Pretax income Income tax Net income % % % 9 % % % PRINCE COMPANY Balance Sheet At December 31, Year 2 Increase (Decrease Year 2 over Year 1 Amount Percent % 5 0 Cash Accounts receivable (net) Inventory Property and equipment (net) Total Assets Current liabilities (no interest) Long term liabilities (9% Interest) Common stock (55 par value 5,600 shares outstanding) Retained earnings Total Liabilities & Equity % % % 5