Exercise 1-24 (Algo) Linking the statement of retained earnings and balance sheet LO P2 Mahomes Company reported the following data at the end of its first year of operations on December 31. Cash Accounts receivable Equipment Land Accounts payable Common stock Dividends Net income $ 12,500 13,500 15,500 53,500 9,500 47,500 28,500 66,500 (a) Prepare its year-end statement of retained earnings. Hint. Retained Earnings on January 1 was $0. (b) Prepare its year-end balance sheet, using retained earnings calculated in part a.