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

Required

a. You have been asked to assist the accountant for the Pick 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 a \(\$ 4,000\) dividend.

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Sales revenue.. $52,000 Equipment, net...... $31,000 Expenses. 41,000 Building, net.... 49,000 Dividends. 4,000 Accounts payable. 8,000 Cash... 5,250 Notes payable.. 49,500 Accounts receivable 6,750 Common stock. 33,000 Inventory.. 5,500 Retained earnings ?