Stargel Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Υ2 20Υ1 Retained earnings, January 1. $5,375,000 $4,545,000 Net income. $ 900,000 $ 925,000 Dividends: On preferred stock On common stock. Increase in retained earnings.. (45,000) (45,000) (50,000) $ 805,000 (50,000) $ 830,000 $5,375,000 Retained earnings, December 31 $6,180,000 Stargel Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 $ 10,000,000 (5,350,000) $ 4,650,000 $ (2,000,000) (1,500,000 Š (3,500000) $ 1,150.000 Sales $ 9,400,000 (4,950,000) $ 4,450,000 $(1,880,000) Cost of goods sold... Grass profit. Selling expenses Administrative expenses. Total operating expenses Operating income. Other revenue and expensa Other revenue. Other expense (interest).. Income before income tax expense. (1,410,000 $(3.290,000) $ 1,160,000 150.000 140,000 (170,000) (150,000) $ 1,150,000 (225,000) $ 925,000 $ 1,130,000 (230000) Income tax expense. Net income... 900,000 Stargel Inc. Comparative Balance Sheet Dacember 31, 20Y2 and 20Y1 20Y2 20Y1 Assets Current assets: $ 500,000 $ 400,000 1,000,000 Cash. Marketable securities 1,010,000 Accounts receivable (net).. 740,000 510,000 Inventories.. 1,190,000 950,000 Prepaid expenses. 250.000 $3,690,000 229.000 $3,089,000 Total current assets. Long-term investmants. Property, plant, and equipment (net) Total assets .. 2,300,000 3,366,000 2,350,000 3,740,000 $9,780,000 $8,755,000 Liabilities Current liabilities S 900.000 S 880,000 Long-term liabilities: Mortgage note payable, 10% . Bonds payable, 10% Total long-term liabilities Total liabilities .. $ 200,000 1,500,000 $1,700,000 $2.600,000 1,500,000 $1,500,000 $2,380,000 Stockholders Equity Proforred $0.90 stock, $10 par. Common stock, $5 par. Retained earnings.. $ 500,000 500,000 $ 500,000 500,000 6,180,000 5,375,000 $6,375,000 $8,755,000 Total stockholders' equity. $7.180,000 $9,780,000 Total liabilities and stockholders' equity.