E2—1 5 (Preparing financial statementsfrom simple transactions) Mary began a business. After collecting $30,000 from an equity investor and borrowing $15,000 from a bank, she purchased a piece of land for $40,000. During the year she leased the land to Karl and received $12,000 in cash, paying $14,000 cash for expenses. She paid a $1,000 dividend to the equity investor at year end. REQUIRED: Prepare an income statement, a statement of retained earnings, a balance sheet, and statement of cash flows for the period. Evaluate Mary’s decision to pay the $1,000 dividend. (Analyzing financial