Required information [The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation, each contributed $42,000 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, $37,500; amounts due from customers from sales of books, $27,200; equipment, $41,000; amounts owed to publishers for books purchased, $7,700; one-year notes payable to a local bank for $3,300. No dividends were declared or paid to the stockholders during the year. equired: . Complete the following balance sheet at December 31, 2017 Assets Cash Accounts Receivable Equipment READER DIRECT Balance Sheet At December 31, 2017 Liabilities $ 37,500 Accounts Payable 27.200 Notes Payable 41,000 Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity $ 105,700 Total Liabilities and Stockholders' Equity 11,000 84.000 10,700 94,700 S 105,700 Total Assets The following information applies to the questions displayed below.) Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $42,000 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, $37,500, amounts due from customers from sales of books, $27.200: equipment, $41,000, amounts owed to publishers for books purchased, $7,700; one-year notes payable to a local bank for $3,300. No dividends were declared or paid to the stockholders during the year. 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 Answer is not complete. Net Income Ending RE + Dividends - Beginning RE $ 2,200 - 4,500 - $ 2300 X Required information (The following information applies to the questions displayed below.] Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $42,000 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, $37,500; amounts due from customers from sales of books, $27,200, equipment, $41,000, amounts owed to publishers for books purchased, $7,700; one-year notes payable to a local bank for $3,300. No dividends were declared or paid to the stockholders during the year. . Assuming that Reader Direct generates net income of $4,500 and pays dividends of $2,300 in 2018, what would be the ending Retained Earnings balance at December 31, 2018? Answer is complete but not entirely correct. Ending RE = Beginning RE + Net Income - Dividends $ 2,200 = 4,500 - $ 2,300