5. Kate's Cards has a net income of $ 1,500 for the current month of August 2016. Kate had decided that the business will have a fiscal year-end of August 3, so this is the completion of the com- pany's first year, Kate will be preparing her annual financial statements; however, she would also like to see a monthly statement of retained earnings for August 2016. In addition, she would like to see how the stockholders equity section of the balance sheet will look after the addition of the preferred stock. The stockholders' equity section from July 2016 is shown below Stockholders Equity Common stock (5,0CO shares authorzed, 5C0 shares issued and outstanding)...500 Paid-in capital in excess of par value common stock Hetained eamings 9,500 15,000 ... $25,000 Prepare a statement of retained earnings for the month of August 2016 and the stockholders equity section of the balance sheet as of August 31.2016