Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $52,675 cash to start the business and received 4,300 shares. The store completed its first year of operations on December 31,2020 . On that date, the following financial items for the year were determined: cash on hand and in the bank, $49,150; amounts due from customers from sales of books, $28,850; property and equipment, $54,750; amounts owed to publishers for books purchased, $8,900; one-year note payable to a local bank for $4,200. No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31,2020 : 2. Using the retained earnings equation and an opening balance of $0, work backward to compute the amount of net income for the year that ended December 31, 2020. Net income 3. As of December 31, 2020, did most of the financing for assets come from creditors or shareholders? Creditors Shareholders 4. Assuming that Reader Direct generates net income of $3,525 and pays dividends of $2,150 in 2021 , what would be the company's ending Retained Earnings balance at December 31, 2021