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1. Arrange the following items in proper balance sheetpresentation:Accumulateddepreciation................................................$200,000Retainedearnings...................................................................110,000Cash...............................................................................................5,000Bondspayable..........................................................................142,000Accountsreceivable.................................................................38,000Plant and equipment—originalcost.................................. 720,000Accountspayable.......................................................................35,000Allowance for baddebts............................................................6,000Common stock, $1 par, 150,000 shares outstanding...150,000Inventory.......................................................................................66,000Preferred stock, $50 par, 1,000 sharesoutstanding.....50,000Marketablesecurities.................................................................15,000Investments................................................................................... .20,000Notespayable..................................................................................83,000Capital paid in excess of par (commonstock)......................88,0002. Elite Trailer Parks has an operating profit or $200,000.Interest expense for the year was $10,000; preferred dividends paidwere $18,750; and common dividends paid were $30,000. The tax was$61,250. The firm has 20,000 shares of common stockoutstanding.a. Calculate the earnings per share and the common dividends pershare for Elite Trailer Parks.b. What was the increase in retained earnings for the year?