var Exercises The following selected balance sheet amounts are from Aerial Inc. as of December 31, 2020. Exercise 331 Computing Retained Earings and er Income LOI Selected Balance Sheet Amounts $ 4,800 10,000 Assets Cash. Accounts receivable Supplies Equipment. $14,000 5,000 3,800 25.000 Liabilities Accounts payable Note payable. Stockholders' equity Common stock ...... Paid-in capital in excess of par. 10,000 5,000 Required a. Compute retained earnings as of December 31, 2020 assuming retained earnings is the only missing cat- egory in the selected balance sheet amounts above. b. Determine net income assuming that the balance in retained earnings on January 1, 2020, was $2,500; divi- dends declared during 2020 were $4,500; and no other items affected retained earnings during 2020