The financial statements of Sarasota Ltd. include the following items at December 31, 2025. Accounts payable $22,720 Income tax expense $5,560 Accounts receivable. 22,500 Interest expense 4,900 Accumulated depreciation-buildings 54,620 Interest payable 2,240 Accumulated depreciation-equipment 23,200 Land 209,520 Buildings 144,560 Lpng-term investments 31,310 Cash 25,950 Mortgage payable 112,320 Common stock 151,200 Operating expenses 171,320 Equipment 71,360 Prepaid insurance 1,560 Retained earnings, January 1 125,840 Service revenue 197,670 Supplies 1,270 (a) Your answer is correct. Calculate net income and the ending balance of retained earnings at December 31, 2025. Net income 15890) Ending balance of retained earnings $ 141730 (b) Prepare a balance sheet dated December 31, 2025. Assume that the company will pay $32,940 of the mortgage payable in 2026. (List Current Assets in order of liquidity and Property, Plant and Equipment in order of Land, Buildings and Equipment) SARASOTA LTD. Balance Sheet Assets Liabilities and Stockholders' Equity