(Learning Objectives 4, 5: Preparing an income statement, a statement of changes in equity, and a balance sheet; using accounting information to make decisions) The assets and liabilities of Post Shrub as of December 31, 20X6, and revenues and expenses for the year ended on that date follow.

❙ Requirements 1 Prepare the income statement of Post Shrub, Inc., for the year ended December 31, 20X6.
2 Prepare the company’s statement of changes in equity for the year.
3 Prepare the company’s balance sheet at December 31, 20X6.
4 Analyze Post Shrub, Inc., by answering these questions:

a. Was Post Shrub profi table during 20X6? By how much?

b. Did retained earnings increase or decrease? By how much?

c. Which is greater, total liabilities or total equity? Who owns more of Post Shrub’s assets, creditors of the company or Post Shrub’s shareholders?