The following items are taken from the annual financial statements of Opco Company at December 31, 2022, the end of its first year of operations.

Accounts Receivable $ 40,000

Accounts Payable 30,000

Cash 10,000

Common Stock 20,000

Notes Payable 20,000

Service Revenue 100,000

Fuel Expense 15,000

Rent Expense 20,000

Advertising Expense 5,000

Salaries and Wages Expense 20,000

Retained Earnings ?

Dividends 10,000

A. Calculate net income for the year ended December 31, 2022.

B. Prepare the statement of retained earnings for the year ended December 31, 2022.

C. Calculate earnings per share. There were 4,000 shares of common stock outstanding at the beginning of the year and 6,000 shares outstanding at the end of the year. The company has no preferred stock.