Meredith Corporation is in the business of providing dog and cat grooming services to customers within the city of New York. The following information concerning financial activities during 2016 is available at December 31, 2016:

Grooming revenue	$130,000		Salary and wage expense	$44,000
Dividends declared and paid	13,000		Rent expense	24,000
Equipment	40,000		Furniture	60,000
Accounts payable	30,000		Accounts receivable	23,000
Capital stock	22,000		Retained earnings, Jan. 1,2016	21,000
Utilities expense	10,000		Notes payable	88,000
Cash	33,000		Income tax expense	7,000

A.	Calculate net income for 2016.
B.	Prepare a statement of retained earnings for the year ended December 31, 2016.
C.	What information can you derive from the statement of retained earnings concerning this company? Explain.