The accounting records of Callen Incorporated reveal the following for Year 7 and Year 8. Callen applies U.S. GAAP, and reports its results in thousands of euros.

a. Prepare a comparative balance sheet for Callen Incorporated as of December 31, Year 7, and December 31, Year 8. Classify each balance sheet item into one of the following categories: current assets, noncurrent assets, current liabilities, noncurrent liabilities, and shareholders equity.

b. Prepare an income statement for Callen Incorporated for the year ended December 31, Year 8. Separate income items into revenues and expenses.

c. Prepare a schedule explaining the change in Retained Earnings between December 31, Year 7, and December 31, Year 8. Callen declared dividends during Year 8. You will need to derive the amount in working this part of the problem.

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December 31 Balance Sheet Items Year Year 7 Cash 2,559 149,990 72,325 151,894 43,598 38,315 134,916 109,335 88,955 27,947 169,639 222,731 30,536 98,130 72,325 114,249 15,241 31,566 109,992 84,334 56,459 19,859 Property, Plant, and Equipment (net). . Notes Payable to Banks (due within one year). . . . Other Current Assets.__ . .. . For the Year Ended December 31, Year 8 Income Statement Items 141,183 382,349 24,324 2,744 695,623 72,453 Sales Revenue Selling Expenses... .