Computing Retained Earnings and Net Income The following selected balance sheet amounts are from Aerial Inc. as of December 31, 2020. Selected Balance Sheet Amounts Liabilities Assets Cash $ 7,680 16,000 Accounts receivable Supplies Equipment $22,400 Accounts payable 8,000 Note payable 6,080 Stockholders' equity 40,000 Common stock Paid-in capital in excess of par 16,000 8,000 Required $ a. Compute retained earnings as of December 31, 2020, assuming retained earnings is the only missing category in the selected balance sheet amounts above. b. Determine net income assuming that the balance in retained earnings on January 1, 2020, was $4,000; dividends declared during 2020 were $7,200; and no other items affected retained earnings during 2020. $