The most recent financial statements for Moose Tours, Inc., appear below. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. The firm is operating at full capacity and no new debt or equity is issued. The tax rate is 35 percent.

MOOSE TOURS, INC.
2009 Income Statement
Sales			$	943,000
Costs				718,000
Other expenses				17,000
Earnings before interest and taxes			$	208,000
Interest expense				11,000
Taxable income			$	197,000
Taxes				68,950
Net income			$	128,050
Dividends	$	64,025
Addition to retained earnings		64,025

MOOSE TOURS, INC.
Balance Sheet as of December 31, 2009
Assets				Liabilities and Owners