The assets and liabilities of Post Fir as of December 31, 2012, and revenues and expenses for the year ended on that date follow.
Land.................................... Note payable...................... Property tax expense...........Rent expense....................... Accounts receivable.............Service revenue.................... Supplies...............................Utilities expense.................. $ 8,200 31,000 2,400 13,000 26,500 143,000 1,900 2,700Equipment.......................... Interest expense.................. Interest payable.................. Accounts payable............... Salary expense.................... Building.............................. Cash................................... Common stock................... $ 35,000 4,6501,000 9,000 34,000 125,000 14,000 5,350
Beginning retained earnings was $114,000, and dividends totaled$36,000 for the year. Prepare the income statement of Post Fir, Inc., for the year ended December 31, 2012. Prepare the company’s statement of retained earnings for the year. Prepare the company’s balance sheet at December 31, 2012. Analyze Post Fir, Inc., by answering these questions: a. Was Post Fir profitable during 2012? By how much? b. Did retained earnings increase or decrease? By how much? c. Which is greater, total liabilities or total equity? Who owns more of Post Fir’s assets, creditors of the company or Post Fir’s stockholders?