Question B1, ii I don't understand how to figure out how sales of equipment helps me determine the yearly purchases

Part B (30 points total) 81. Pinnacle lncorporated was founded on January 1, 2013; since then, the company has been fairly successful; however, in an effort to save some money, the president has been keeping track of the financial records rather than hiring a professional accountant. Although some data is missing, a comparative balances appears below; unless otherwise noted, all numbers are as of December 31 report of year-end account st for each year after all transactions have been summarized in the accounting framework. 2016 2015 Dividends W . W/ Retained earnings, Jan. 1 ? '/ ?/ Revenues 485,906'/ 424,629/ Notes payable ? / 19,20 '- Accounts payable 14,0896 12,765/'/ Selling and administrative expenses 16,246- / 15,492 / 7 102,713 Payroll expense , Capital 40,000'/ 38,00 Cost of Goods Sold 358,416/ 300,246 '/ Cash 14,542// 16,489/ Equipment 64,513/ 57,93 ' Retained earnings, Dec. 31 22,192X/ , 22,267/' Accounts receivable 1,21 89 lnventory 18,612J . Required: i. ii. Prepare an income statemeKt, 3 determine the missing values. (SQL ati-Reached} lf $2,800 of equipment were sold during 2 tatement/of retained earnings and a balance sheet for each yeal 016, determine the dollar amount of equipment that nr have been purchased during 2016. The Simon Company had the following transactions Jan. 1 Jan. 1 Jan Jan Jan Jan Jan Jan. Jan. Jan. .3 .6 .10 .14 .18 24 26 31 Owner invested $16,000 cash to start the company Purchased $8,150 of equipment Paid $250 for advertising Purchased $9,000 of inventory on account Paid rent of $800 Sold $5,000 of inventory previously purchased for $12,600 Borrowed $4,800 from a bank Paid employee payroll of MSSO Received a $300 hill tm January; will be paid next month A man d'hfiflmdi {ra mm m ibn mm