As of December 31, 2006, Thomas Company had total assets of \($156,000\), total liabilities of \($85,600\), and common stock of \($48,400\). During 2007 Thomas earned \($36,000\) of cash revenue, paid \($22,000\) for cash expenses, and paid a \($1,000\) cash dividend to the stockholders.

Required:

a. Determine the amount of retained earnings as of December 31, 2006.

b. Determine the amount of net income earned in 2007.

c. Determine the amount of retained earnings as of December 31, 2007.

d. Determine the amount of cash that is in the retained earnings account as of December 31, 2007