Make a statement of changes in retained earninbs

Sales Operating Expenses: Cost of goods sold Depreciation expense Other selling and administrative Total Operating Expenses Operating Income Loss on sale of investments Income Before Taxes Income taxes Net Income Net income (Less)) Andru E Dec (in thousands) Paula Craft Company Income Statement For the Year Ended December 31, 2007 (in thousands) Assets Current Assets Cash fication decreient Accounts receivable Inventory Prepaid expenses Total Current Assets Investments Total Assets Equipment Less: Accumulated depreciation Equipment, net Bonds payable $2,470 65 1,671 Total Liabilities Stockholders' Equity nting Liabilities and Stockholders' Equity Current Liabilities Accounts payable Taxes payable Total Current Liabilities Paula Craft Company Balance Sheets At December 31 Common stock Retained earnings Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity $4,800 $ 4,206 594 $ $ (12) 582 (14) 568 2007 $1,529 1,006 Septe 396 40 $2,971 809 (75) 734 $ $ $ 52 $3,757 $ 726 14 $ 740 $ 500 $1,240 $1,200 1,397 (80) $2,517 $3,757 2006 $ 660 800 500 62 $2,022 $ 558 (10) 548 $ $ 99 $2,669 $ 809 10 819 $ -0- 819 $ $ 900 950 -0- $1,850 $2,669

Paula Craft Compeny Incose statement For the Year rnded Decenber 31, 2007 (in thousands) Saloa Operating Ecpensen: Cost of goods sold Depreciation expense Other selling and administrative 1.671 Total Operating Bxpenses Operating Income Loss on sale of inventmencs Ineome before Taxes Incothe taxest Net Income $4,800 $2.470 65 1.671 5.5944.206 5568(14)5582(12) Paula Craft Company balance sheets At December 31 (in Ehousands) 2007 2005 Assets Current assets Cash Accounts receivable Inventory Prepaid expenses Total Current Assets Total Assets $3,252552 5. 809 Accounts payable Taxes payable Total Current Liabilities 14$740819 Bonds payable Total Liabilities $1.2405500 58190 stockholdors' Equity Common stock Retained earnings $1.200 $900 Treasury Stock Total Stockholders' Bquity Total Liabilities and stockholdera' Equity 1.397 950 53,75752,517(80) 51.8500