Chapter 1 Mel's Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of $40,000, and retained earnings of $18,000. During the year, the business recorded $100,000 in auto repair revenues, $70,000 in expenses, and the company paid dividends of $15,000. NI R-E 1. The net income reported by Mel's Mechanical Repair Shop for the year was 2. Mel's balance of stockholders' equity at the start of the year was 3. Mel's balance of retained earnings at the end of the year was