Required information E1-4 Completing a Balance Sheet and Inferring Net Income [LO 1-2, LO 1-3) [The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contributed $40,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017 On that date, the following financial items for the year were determined cash on hand and in the bank $35,500, amounts due from customers from sales of books. $27,000, equipment $39,000, amounts owed to publishers for books purchased, $7,500; one year notes payable to a local bank for $3,000. No dividends were declared or paid to the stockholders during the year E1-4 Part 2 2. Using the retained earnings equation and an opening balance of $0, compute the amount of net income for the year ended December 31, 2017 Required information E1-4 Completing a Balance Sheet and Inferring Net Income (LO 1-2, LO 1-3) {The following information applies to the questions displayed below) Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contributed $40,000 cash to start the business and received 4.000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined cash on hand and in the bank, $35,500, amounts due from customers from sales of books, $27.000, equipment. $39,000, amounts owed to publishers for books purchased, $7.500; one-year notes payable to a local bank for $3.000. No dividends were declared or paid to the stockholders during the year E1-4 Part 2 2. Using the retained earnings equation and an opening balance of $0, compute the amount of net income for the year ended December 31, 2017 Required information E1-4 Completing a Balance Sheet and Inferring Net Income [LO 1-2, LO 1-3) (The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $40,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017 On that date, the following financial items for the year were determined cash on hand and in the bank, $35,500, amounts due from customers from sales of books, $27.000 equipment, $39,000 amounts owed to publishers for books purchased $7,500, one-year notes payable to a local bank for $3,000 No dividends were declared or paid to the stockholders during the year E1-4 Part 3 3. As of December 31, 2017, did most of the financing for assets come from creditors or stockholders? O Creditors Stockholders ! Required Information E1-4 Completing a Balance Sheet and Inferring Net Income [LO 1-2, LO 1-3) {The following information applies to the questions displayed below] Ken Young and Kim Sherwood organized Reader Direct as a corporation each contributed $40,000 cash to start the business and received 4,000 shares of stock. The store completed its first year of operations on December 31, 2017. On that date, the following financial items for the year were determined cash on hand and in the bank. $35,500, amounts due from customers from sales of books. $27,000, equipment, $39,000, amounts owed to publishers for books purchased, $7,500, one-year notes payable to a local bank for $3,000 No dividends were declared or paid to the stockholders during the year. E1-4 Part 4 4. Assuming that Reader Direct generates net income of $3,500 and pays dividends of $2,100 in 2018, what would be the ending Retained Earnings balance at December 31, 2018