Farry s Financial Statements Assets Dec 31 2000 Dec 31 2001 Dec 31 2002 Dec 31 2003 Cash 10 000 32 000 40 500 48 500 Inventory 15 000 37 000 75 000 15 000 Other Assets 25 000 35 000 60 000 60 000 Total Assets 50 000 104 000 175 500 123 500 Liabilities 20 000 50 000 100 000 55 000 Capital Stock 20 000 20 000 20 000 20 000 Retained Earnings 10 000 34 000 55 500 48 500 Total Liabilities and Equity 50 000 104 000 175 500 123 500 Zero 10 000 15 000 5 000 Liabilities and Equity LIFO Reserve Income Statement Item Calendar Year 2001 200 000 Sales Revenue Calendar Year 2002 250 000 Calendar Year 2003 150 000 COGS 110 000 145 000 80 000 Other Expenses 50 000 60 000 60 000 Income Before Taxes 40 000 45 000 10 000 Tax Expense 12 000 13 500 3 000 Net Income 28 000 31 500 7 000