Problem 3-8A Preparing closing entries, financial statements, and ratios LO A1, A2, P3, P4 The adjusted trial balance for Tybalt Construction as of December 31, 2017, follows. TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017 No. Account Title Debit Credit 101 Cash $ 7,500 104 Short-term investments 22,500 126 Supplies 8,900 128 Prepaid insurance 8,500 167 Equipment 50,000 168 Accumulated depreciationEquipment $ 25,000 173 Building 174,000 174 Accumulated depreciationBuilding 58,000 183 Land 50,940 201 Accounts payable 15,500 203 Interest payable 2,400 208 Rent payable 3,400 210 Wages payable 2,900 213 Property taxes payable 1,200 233 Unearned professional fees 7,400 251 Long-term notes payable 69,000 307 Common stock 7,500 318 Retained earnings 122,700 319 Dividends 11,300 401 Professional fees earned 101,000 406 Rent earned 15,000 407 Dividends earned 2,000 409 Interest earned 2,800 606 Depreciation expenseBuilding 12,760 612 Depreciation expenseEquipment 7,500 623 Wages expense 26,500 633 Interest expense 3,800 637 Insurance expense 9,900 640 Rent expense 13,100 652 Supplies expense 6,800 682 Postage expense 3,600 683 Property taxes expense 3,800 684 Repairs expense 8,600 688 Telephone expense 1,800 690 Utilities expense 4,000 Totals $ 435,800 $ 435,800 The December 31, 2016, credit balance of the Retained Earnings account was $122,700. Tybalt Construction is required to make a $7,500 payment on its long-term notes payable during 2018. Required: 1a. Prepare the income statement for the calendar-year 2017. 1b. Prepare the statement of retained earnings for the calendar-year 2017. 1c. Prepare the classified balance sheet at December 31, 2017. 2. Prepare the necessary closing entries at December 31, 2017. 3. Use the information in the financial statements to compute the following ratios: