The assets and liabilities of Blue Moon Products, Inc., as of December 31, 2016, and revenues and expenses for the year ended on that date follow:

Beginning retained earnings was $364,500, and dividends declared totaled $ 108,000 for the year.
Requirements
1. Prepare the income statement of Blue Moon Products, Inc., for the year ended December 31, 2016.
2. Prepare the company's statement of retained earnings for the year.
3. Prepare the company's balance sheet at December 31, 2016.
4. Analyze Blue Moon Products, Inc., by answering these questions:
a. Was Blue Moon Products profitable during 2016? By how much?
b. Did retained earnings increase or decrease? By how much?
c. Which is a greater, total liability or total stockholders' equity? Who has a greater claim to Blue Moon Products' assets, creditors of the company or Blue Moon Products' stockholders?

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$ 28,000 .. 99,700 7,900 40,200 e84,500 402,000 Service revenue..458,600 6,100 8,100 Equipment Interest expense.. Interest payabL. $ 111,000 Land. 10,800 Note payable 2,300 Property tax expense. 27,000 Rent expense ccounts payable Building. Cash Common stock 1,000 Supplies 3,800 Utilities expense