Constructing Balance Sheets and Determining Income Following is balance sheet information for Lynch Services at the end of 2014 and 2015. December 31, December 31, 2015 2014 Accounts Payable $3,000 $4,500 Cash 11,500 10,000 Accounts Receivable 21,000 16,500 Land 20,000 20,000 Building 125,000 130,000 Equipment 21,500 22,500 Mortgage Payable 45,000 50,000 Supplies 10,000 9,000 Common Stock 110,000 110,000 Retained Earnings ? ? a. Prepare balance sheets at December 31 of each year. Assets Accounts Receivable Supplies Building Equipment Total Assets Liabilities Mortgage Payable Total Liabilities Stockholders' Equity LYNCH SERVICES BALANCE SHEETS December 31 2015 2014 0 $ 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 0 $ 0 0 0 0 0 0 0 Retained Earnings 0 0 Total Stockholders' Equity 0 0 Total Liabilities and Stockholders' Equity $ 0 $ 0 b. The firm declared and paid a cash dividend of $5,000 in December 2015. Compute its net income for 2015. $ 0