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

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%