The following information was reported in the December 31, 2007, financial statements of Southwest Airlines, Inc. (listed alphabetically, amounts in millions).

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Accounts Payable $1,731 Accounts Receivable 845 Aircraft Fuel Expense 2,536 Cash 2,213 Other Assets Other Liabilities Other Operating Expenses Other Revenue $ 2,581 3,107 2,145 336 Contributed Capital 2,153 Property and Equipment 10,874 Dividends 14 Repairs and Maintenance Expense 616 Income Tax Expense 413 Retained Earnings (as of December 31, 2007) 4,788 Interest Expense 69 Salaries Expense 3,213 Landing Fees Expense 560 Supplies 259 Notes Payable 4,993 Ticket Revenues 9,861 1. Prepare an income statement for the year ended December 31, 2007. 2. Prepare a statement of retained earnings for the year ended December 31, 2007. TIP: Assume the balance in retained earnings was $4,157 (million) at January 1, 2007. 3. Prepare a balance sheet at December 31, 2007. 4. Using the balance sheet, indicate whether the total assets of Southwest Airlines at the end of the year were financed primarily by liabilities or stockholders' equity.