Petty Corporation started business on January 1, 2019. The following information was compiled by Petty's accountant on December 31, 2019:

Required

a. You have been asked to assist the accountant for the Petty Corporation in preparing year-end financial statements. Use the above information to prepare an income statement, statement of stockholders' equity, and a balance sheet as of December 31, 2019.

b. Comment on the decision to pay an \(\$ 8,000\) dividend.

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Sales revenue. Expenses. Dividends Cash..... Accounts receivable. Inventory.. $32,000 Equipment, net. $25,000 20,000 Building, net.. 59,000 8,000 Accounts payable.. 7,000 3,250 Notes payable... 50,500 2,750 Common stock. 33,000 4,500 Retained earnings ?