Marshall Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 20Y2 and 20Y1
			20Y2		20Y1
Retained earnings, January 1			$ 4,526,050		$ 3,821,450
Net income			966,000		782,700
Total			$ 5,335,850		$ 4,604,150
Dividends
	On preferred stock		$ 13,300		$ 13,300
	On common stock		64,800		64,800
		Total dividends	$ 78,100		$ 78,100
Retained earnings, December 31			$ 5,413,950		$ 4,526,050

Marshall Inc.
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$ 5,617,350		$ 5,175,540
Cost of goods sold	2,124,300		1,954,360
Gross profit	$ 3,493,050		$ 3,221,180
Selling expenses	$ 1,138,450		$ 1,385,380
Administrative expenses	969,790		813,640
Total operating expenses	2,108,240		2,199,020
Income from operations	$ 1,384,810		$ 1,022,160
Other income	72,890		65,240
	$ 1,457,700		$ 1,087,400
Other expense (interest)	360,000		198,400
Income before income tax	$ 1,097,700		$ 889,000
Income tax expense	131,700		106,300
Net income	$ 966,000		$ 782,700

Marshall Inc.

Comparative Balance Sheet

December 31, 20Y2 and 20Y1

Dec. 31, 20Y2

Dec. 31, 20Y1

Assets

Current assets

Cash

$ 867,230

$ 877,820

Marketable securities

1,312,560

1,454,690

Accounts receivable (net)

1,073,100

1,007,400

Inventories

803,000

613,200

Prepaid expenses

164,074

175,560

Total current assets

$ 4,219,964

$ 4,128,670

Long-term investments

3,779,146

1,081,247

Property, plant, and equipment (net)

5,400,000

4,860,000

Total assets

$ 13,399,110

$ 10,069,917

Liabilities

Current liabilities

$ 1,455,160

$ 1,033,867

Long-term liabilities

Mortgage note payable, 8 %

$ 2,020,000

$ 0

Bonds payable, 8 %

2,480,000

2,480,000

Total long-term liabilities

$ 4,500,000

$ 2,480,000

Total liabilities

$ 5,955,160

$ 3,513,867

Stockholders' Equity

Preferred $ 0.70 stock, $ 50 par

$ 950,000

$ 950,000

Common stock, $ 10 par

1,080,000

1,080,000

Retained earnings

5,413,950

4,526,050

Total stockholders' equity

$ 7,443,950

$ 6,556,050

Total liabilities and stockholders' equity

$ 13,399,110

$ 10,069,917

QUESTIONS

11. Asset turnover
12. Return on total assets