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 $380,000 Salary and wage expense $82,000 Dividends declared and paid 85,000 Rent expense 43,000 Buildings 140,000 Land 60,000 Accounts payable 30,000 Accounts payable 30,000 Capital stock 105,000 Retained earnings, Water, gas, and January 1, 2016 42,000 electricity 28,000 Notes payable 34,000 Cash 56,000 Income tax expense 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. ANSWER: A. Vick Corporation Income Statement Year Ended December 31, 2016