Forest Park is a private camping ground near the Lathom Peak Recreation Area. It has compiled the following financial information as of December 31, 2010.

Instructions
(a) Determine Forest Park€™s net income for 2010.
(b) Prepare a retained earnings statement and a balance sheet for Forest Park as of December 31, 2010.
(c) Upon seeing this income statement, Steve Shatner, the campground manager immediately concluded, €œThe general store is more trouble than it is worth€”let€™s get rid of it.€ The marketing director isn€™t so sure this is a good idea. What do youthink?

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Revenues during 2010: camping fees $132,000 Revenues during 2010: general store 25,000 Accounts payable Cash Equipment s 9,000 50,000 129,000 2,500 40,000 Retained earnings (1/1/2010) 5,000 Dividends Notes payable 11,000 Expenses during 2010 8,500 Supplies 114,000 Common stock