1. Prepare the income statement of , Inc., for the year ended December 31, .P ost Elm 2016 2. Prepare the company's statement of retained earnings for the year. 3. Prepare the company's balance sheet at December 31, . 2016 4. Analyze , Inc., by answering these questions:Post Elm a. Was profitable during ? By how much? Post Elm 2016 b. Did retained earnings increase or decrease? By how much? c. Which is greater, total liabilities or total stockholders' equity? Who has a greater claim to assets, creditors of the company or the stockholders?

2. Data

Equipment	$119,000	Land	$23,000
Interest expense	10,700	Note payable	99,100
Interest payable	3,200	Property tax expense	7,600
Accounts payable	28,000	Rent expense	40,800
Salary expense	108,400	Accounts receivable	85,000
Building	409,000	Service revenue	455,600
Cash	46,000	Supplies	6,900
Common stock	21,900	Utilities expense	8,000