THE income statement for the year ended December 31st2008 and the balance sheet for December 31,2007 and 2008, for Technicia,Inc. Are given. Develop Technicia's statement of retained earnings for the year ended December 31, 2008. Briefly discuss the form and informational content of each of these statements.
Income statement
Technician Inc.
For the year ended December 31,2008
Sales revenue $600,000
Less:cost of goods sold 460,000
Gross margin $140,000
Less: operating expenses
General and administrative expense $30,000
Amortization expense 30,000
Total operating expenses $60,000
Operating earnings (EBIT) $80,000
Less: interest expense 10,000
Earnings before taxes $70,000
Less; taxes $27,100
Earnings available for common shareholders (EAC) $42,900
Earnings per share (EPS) $2.15

Balance sheet
Dec 31
ASSETS 2007 2008
Cash $16,000 $15,000
Marketable securities 8000 7200

Accounts receivable 42,200 34,100
Inventories 50,000 82,000
Total current assets $116,200 $138,300
Land and buildings $150,000 $150,000
Machinery and equipment 190,000 200,000
Furniture and fixtures 50,000 54,000
Other 10000 11000
Total gross fixed assets $400,000 $415,000
Less: accumulated amortization 115,000 145,000
Net fixed assets $285,000 $270,000
Total assets $401,200 $408,300

Liabilities and shareholder's equity
Accounts payable $49,000 $57,000
Line of credit 16,000 13,000
Accruals 6,000 5,000
Total current liabilities $71,000 $75,000
Long term debt $160,000 $150,000
Shareholder's equity
Common shares(20,000 shares
Outstanding in 2007, 19,500 in 2008) $120,000 $110,200
Retained earnings 50,200 73,100
Total shareholders equity $170,200 $183,300
Total liabilities and shareholder's
Equity $401,200 $408,300