Instructions The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Sterns Aud shown for balance sheet items are balances as of December 31, 2016 (with the exception of retained earnings, which is the bala amounts shown for income statement items are balances for the year ended December 31, 2016 Accounts pavable Accounts receivable Advertising expense Capital stock Cash Display fixtures Dividends paid during the year $4,400 100 14,500 50,000 2,490 45,000 12,000 Notes pavable Rental revenue Rent expense Retained earnings Salaries and wages expense Supplies inventory Water, gas, and electricity $10,000 125,800 59,900 35,690 18,100 70,000 3,800 Required: 1. Prepare an income statement for the year ended December 31, 2016. 2. Prepare a statement of retained earnings for the year ended December 31, 2016. 3. Prepare a balance sheet at December 31, 2016 4. You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy stock in this company