The following
information was drawn from the annual report of Machine Imports
Company (MIC).
For the Years
Year 1
Year 2
Income Statement
Revenues
$
735,000
$
816,600
Operating
expenses
585,000
642,600
Income from
continuing operations
150,000
174,000
*Infrequent
item—lottery win
75,000
Net income
$
150,000
$
249,000
Balance Sheet
Assets
$
1,083,000
$
1,083,000
Liabilities
$
249,000
$
0
Stockholders’
equity:
Common
stock
465,000
465,000
Retained
earnings
369,000
618,000
Total
liabilities and stockholders’ equity
$
1,083,000
$
1,083,000
*By...