Farry’s Financial Statements Assets Dec 31, 2000 Dec 31, 2001 Dec 31, 2002Dec 31, 2003 Cash 10,000 32,000 40,500 48,500Inventory 15,000 37,000 75,000 15,000Other Assets 25,000 35,000 60,000 60,000Total Assets 50,000 104,000 175,500 123,500Liabilities and Equity Liabilities 20,000 50,000 100,000 55,000Capital Stock 20,000 20,000 20,000 20,000Retained Earnings 10,000 34,000 55,500 48,500Total Liabilities and Equity 50,000 104,000 175,500 123,500LIFO ReserveZero 10,000 15,000 5,000Income Statement Item Calendar Year 2001 Calendar Year 2002 Calendar Year 2003 Sales Revenue200,000 250,000 150,000COGS 110,000 145,000 80,000Other Expenses 50,000 60,000 60,000Income BeforeTaxes 40,000 45,000 10,000Tax Expense 12,000 13,500 3,000Net Income 28,000 31,500