ABC, Inc., works weddings and prom-type parties. The balance of retained earnings was $16,000 at December 31, 2021. At December 31, 2022, the businesss accounting records show these balances:Cash37,000Note payable12,000Accounts payable7,000Retained earnings?Advertising expense3,000Salary expense25,000Service revenue80,000Equipment50,000Dividends13,000Common stock29,000Requirement 1. Prepare the following financial statements for ABC, Inc. for the year ended December 31, 2022:a. Income statement b. Statement of retained earnings c. Balance sheet 2. Answer these questions about the company: a. Was the result of operations for the year a profit or a loss? How much? b. How much in total economic resources does the company have as it moves into the new year?c. How much does the company owe to creditors? d. What is the dollar amount of the stockholders equity in the business at the end of the year