1. Vick Corporation has been in the business of delivering small packages for local companies within the city of Atlanta, Georgia, since 1960. The following information concerning financial activities during 2016 is available at December 31, 2016: Delivery revenue Dividends declared and paid Buildings Accounts payable Capital stock Water, gas, and electricity Cash $380,000 85,000 140,000 30,000 105,000 Salary and wage expense Rent expense Land Accounts payable Retained earnings, January 1, 2016 Notes payable Income tax expense $82,000 43,000 60,000 30,000 28,000 56,000 42,000 34,000 18,000 A. Prepare an income statement for the year ended December 31, 2016. B. If you were a bank loan officer and Vick Corporation wanted to borrow $100,000 from your bank, would you lend the money? Explain. C. Calculate retained earnings at December 31, 2016. DI ANSWER: A. Vick Corporation Income Statement Year Ended December 31, 2016