Required: a-1. Compute the amount to be shown for retained earnings. a-2. Prepare a balance sheet at December 31, year 1 b. Assume that no payment is due on the notes payable until year 3 . Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1 ? Complete this question by entering your answers in the tabs below. Prepare a balance sheet at December 31 , year 1