CASE A: In 2016, Randy Martin began operating NEK Inc., a chain of men's shirt retailers. The corporation was authorized to issue unlimited shares of no-par value common stock and unlimited shares of $8 cumulative, $35 par value, preferred stock. 10,000 shares of the preferred stock were issued for a total of $900,000 and 35,000 shares of common stock were issued at $20 per share. In 2016 NEK Inc. earned a total of $500,000 and paid dividends of $4 per share on the common stock, in addition to the regular dividends on the preferred stock. In 2017 , had a net income of $900,000 and paid dividends only to preferred shareholders. CASE B: Jeff Bowman organized Version Corporation in January 2016. The corporation issued one quarter of its 160,000 authorized shares of no par value common stock at $25 per share. On January 7 , 2016 , the corporation sold at $110 each 5,000 shares of $9,$50 par value, cumulative preferred stock (with unlimited shares authorized). Version suffered losses in its first year, reporting a deficit of $220,000 a the end of 2016 . No dividends were paid. In 2017 , the company earned a total of $850,000. Dividends of $5.50 per share were paid on common stocks. Preferred shares were paid as required in 2017. REQUIRED: 1. Complete the statement of retained earnings and the shareholder's equity section of the balance shee for each corporation. Make sure to use spreadsheet formulas to show all workings. 2. Write a brief memo to a potential investor, explaining which of the above companies represents the