Is anything questionable about the relationship between retained earnings and income for the Anycompany data shown in Exhibit?

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PRIOR YEAR CURRENT YEAR CHANGE COMMON SIZE ANALYSIS COMMON SIZE ANALYSIS PERCENT CHANGE ANALYSIs BALANCE BALANCE AMOUNT Assets Cash Accounts receivable Allowance doubtful accounts 4.12% 18.56 14.78% 600,000 500,000 $ 200,000 900,000 IS 400,000) 400,000 (10,000) 100,000 90,000 1,000,000 (300,000) S 790,000 -66.67% Total current assets Equipment Accumulated amortizatiorn Total assets 1,500,000 2,560,000 3,000,000 (1,500,000) $4,060,000 36.95 63.05 73.89 36.95 100.00% 1,600,000 2,650,000 4,000,000 (1,800,000) $4,850,000 32.99 54.63 82.47 3.52 33.33 20.00 19.45% 100.00% Liabilities and Equity Accounts payable Bank loans, 11% Accrued interest Total current liabilities Long-term debt, 10% Total liabilities Share capit Retained earnings Total liabilities and equity Income Sales 000) 750,000 20,000 630,000 (200,000) 430,000 $ 500,000 1 2.32% 400,000 750,000 40,000 1,190,000 8.25% 2000% 0.82 33.33 60,000 560,000 600,000 1,160,000 2,000,000 900,000 $4,060,000 112.50 14.78 8.25 32.78 41.24 25.98 100.00% 37.07 49.26 22.17 100.00% 1,590,000 2,000,000 1,260,000 $4,850,000 360,000 S 790,000 19.46% $9,000,000 6,750,000 2,250,000 1,590,000 300,000 360,000 60,000 120,000 $9,900,000 7,200,000 2,700,000 1,734,000 300,000 666,000 40,000 256,000 S370,000 900,000 450,000 100.00% 10.00% 100.00% 72.73 27.27 17.52 20.00 Gross margin General expense 144,000 0 306,000 ation Operating income Interest expense Income taxes (40%) Net income (20,000) 33.33 2.59 37 4% 136,000 S 190,000 105.56%