Required information [The following information applies to the questions displayed below.] The Sky Blue Corporation has the following adjusted trial balance at December 31. Prepaid Insurance Cash Accounts Receivable Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Dividends Sales Revenue Rent Revenue Debit $ 1,270 Credit 2,400 2,700 3,400 14,000 $ 3,400 5,820 1,200 3,300 680 2,800 1,160 340 45,630 340 Salaries and Wages Expense 22,400 Depreciation Expense 1,700 Utilities Expense 4,620 Insurance Expense 1,800 Rent Expense Income Tax Expense Total 6,400 3,300 $ 64,330 $ 64,330 Required: 1. Prepare an income statement for the year ended December 31. 2. How much net income did the Sky Blue Corporation generate during the year? Required: Prepare a statement of retained earnings for the year. SKY BLUE CORPORATION Statement of Retained Earnings Balance, January 1 Balance, December 31 $ 0