Financial statement information about four different companies is as follows:

\section*{Instructions}

(a) Determine the missing amounts.

(b) Prepare the retained earnings statement for Zarle Company. Assume that the beginning balance in retained earnings is zero.

(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and balance sheet.

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Zarle Wasicsko Company Company McKane Russe Company Company January 1, 1996: Assets $ 80,000 $100,000 (g) $150,000 Liabilities 50,000 (d) 75,000 (i) Stockholders' equity (a) 60,000 45,000 90,000 December 31, 1996: Assets (b) 130,000 180,000 (k) Liabilities 55,000 62,000 (h) 80,000 Stockholders' equity 45,000 (e) 110,000 145,000