E1-4 Completing a Balance Sheet and Inferring Net Income LOZ, LO3) Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contributed $66,150 cash to start the business and received 5,400 shares. The store completed its first year of operations on December 31 2017. On that date, the following financial items for the year were determined cash on hand and in the bank $55,200, amounts due from customers from sales of books, $36,000: property and equipment, $79.500, amounts owed to publishers for books purchased, $12,200; one-year note payable to a local bank for $9,150. No dividends were declared or paid to the shareholders during the year. Required: 1 Complete the balance sheet at December 31, 2017: READER DIRECT Balance Sheet At December 31, 2017 Assets Liabilities Total liabilities Shareholders' equity Total shareholders' equity Total abilities & shareholders' equity Total assets 2. Using the retained earnings equation and an opening balance of so, work backward to compute the amount of net income for the year ended December 31, 2017 Not income 3. As of December 31, 2017, did most of the financing for assets come from creditors or shareholders? Creditors Shareholders 4. Assuming that Reader Direct generates net income of $5,450 and pays dividends of $2,700 in 2018, what would be the company's ending Retained Earnings balance at December 31, 2018? Ending retained earnings