On January 1, 2016, the following information was drawn from the accounting records of Carter Company: cash of $325; land of $2,175; notes payable of $500; and common stock of $1,375. Required a. Determine the amount of retained earnings as of January 1, 2016. Amount of retained earnings b. After looking at the amount of retained earnings, the chief executive officer (CEO) Iwants to pay a $425 cash dividend to the stockholders. Can the company pay this dividend? Yes No c. As of January 1, 2016, what percent of the assets were acquired from creditors? (Round your answer to 1 decimal place.) Percent of assets acquired % d. As of January 1, 2016, what percent of the assets were acquired from investors? (Round your answer to 1 decimal place.) Percent of assets acquired % e. As of January 1, 2016, what percent of the assets were acquired from retained earnings? (Round your answer to 1 decimal place.) Percent of assets acquired % f. Create an accounting equation using percentages instead of dollar amounts on the right side of the equation. (Round your percentage answers to 1 decimal place.) CARTER COMPANY Accounting Equation as of January 1, 2016 Assets = Liabilities + Stockholders' Equity Cash + Land + = = Notes Payable + % + Common Stock + Retained Earnings % + % g. During 2016, Carter Company earned cash revenue of $600, paid cash expenses of $350, and paid a cash dividend of $55. (Hint. It is helpful to record these events under an accounting equation before preparing the statements.) (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Account Titles for Retained Earnings".) Assets Cash + Land + CARTER COMPANY Accounting Equation as of December 31, 2016 = Liabilities + Stockholders' Equity Account Titles for II Notes Payable + Common Stock Retained + Earnings + + Retained Earnings g-1. Prepare an income statement dated December 31, 2016. CARTER COMPANY Income Statement For the Year Ended December 31, 2016 g-2. Prepare a statement of changes in stockholders' equity dated December 31, 2016. CARTER COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2016 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity g-3. Prepare a balance sheet dated December 31, 2016. Assets Total assets Liabilities CARTER COMPANY Balance Sheet As of December 31, 2016 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity g-4. Prepare a statement of cash flows dated December 31, 2016. (Amounts to be deducted should be indicated with a minus sign.) CARTER COMPANY Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities Ending cash balance j. What is the balance in the Revenue account on January 1, 2016? Balance in revenue account