Crazy Creek Realty, Inc., organized October 1, 2007, is operated by Jane Eckhart. How many errors can you find in the following financial statements for Crazy Creek Realty, Inc., prepared after its first month of operation?

Jane Eckhart
Retained Earnings Statement
October 31, 2006
Net income for the month .......... $41,250
Retained earnings, October 31, 2007 ..... $41,250

Crazy Creek Realty, Inc.
Statement of Cash Flows
October 31, 2007
Cash flows from operating activities:
Cash receipts from sales commissions ......... $ 92,200
Cash flows from investing activities:
Cash payments for land ............... (40,400)
Cash flows from financing activities:
Cash receipts from retained earnings .......... 81,250
Net increase in cash during October ......... $133,050
Cash as of October 1, 2007 ............. 0
Cash as of October 31, 2007............ $133,050

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Crazy Creek Realty, Inc. Income Statement October 31, 2007 Sales commissions Operating expenses: 92,200 Office salaries expense Rent expense Automobile expense Dividends Miscellaneous expense $16,300 7,600 3,500 2,000 1,550 Total operating expenses 30,950 $41,250 Net income Balance Sheet For the Month Ended October 31, 2007 Assets Cash Notes payable Total assets 60,850 20,000 S 80,850 Liabilities Land 40,400 Stockholders' Equity Capital stock Retained earnings Total liabilities and stockholders' equity $20,000 41,250 61,250 101,650