Required information [The following information applies to the questions displayed below.] Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers $ 26,100 11,100 70,000 42,200 Expenses, including the cost of the merchandise sold (excluding income taxes) Salary payable (on December 31, this was owed to an employee who will be paid on January Total sales revenue 47,940 b) 2,900 117,000 85,200 Income tax expense at 30% pretax income; all paid during the current year 7 88,000 11,700 Common stock (December 31) Dividends declared and paid during the current year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 2. Prepare a statement of stockholders' equity for the year. HIGHLIGHT CONSTRUCTION COMPANY Statement of Stockholders' Equity Common Stock Retained Earnings Balance January 1, Current year Stock issuance 88,000 Add: Net income 22.260 Less: Dividends 11,700 Balance December 31, Current year S 80.000 $ 10,560