The following report is supplied by Smith Brothers Company. Smith Brothers Company Comparative Balance Sheets As of December 31, 2003 and 2002 Liabilities and Assets 2003 2002 Owners’ Equity 2003 2002 Cash eee, Nort: $13,000 $15,000 “Accounts payable......... $ 5,000 $ 4,000 Accounts receivable.. 18,000 11,000 ‘Salaries and commissions Notes receivable .... 11,000 10,000 DAV aDIOF aeons secure nde 8,000 8,000 Panda scwseycrse nde 38,000 38,000 Notespayable........... 25,000 27,000 CapitalistOcksan sxc oe 20,000 20,000 ‘Retained earnings ........ 22,000 —_ 15,000 Total liabilities and Total assets....... $80,000 $74,000 owners’ equity ......... $80,000 $74,000 eee reer rere rere reece Operating expenses for the year included utilities of $4,500, salaries and commissions of $44,800, and miscellaneous expenses of $1,500. Income taxes for the year were $3,000, and the company paid dividends of $5,000. 1. Compute the total expenses, including taxes, incurred in 2003. 2. Compute the net income or net loss for 2003. 3. Compute the total revenue for 2003. 4. Interpretive Question: Why are comparative financial statements generally of more value to users than statements for a single period?