Vick Corporation Has Been in the Business of Delivering Small

Essay

Vick Corporation has been in the business of delivering small packages for local companies within the city of Atlanta,Georgia,since 1960.The following information concerning financial activities during 2017 is available at December 31,2017:
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$\begin{array}{lrlr}\text { Delivery revenue } & \$ 380,000 & \text { Salary and wage expense } & \$ 82,000 \\\text { Dividends declared and paid } & 85,000 & \text { Rent expense } & 43,000 \\\text { Buildings } & 140,000 & \text { Land } & 60,000 \\\text { Accounts payable } & 30,000 & \text { Accounts payable } & 30,000\\\text { Capital stock } & 105,000 & \text { Retained earnings, } \\\text { Water, gas, and } & & \text { January } 1,2017\\\text { electricity } & 28,000 & \text { Notes payable } & 34,000 \\\text { Cash } & 56,000 & \text { Income tax expense } & 18,000\end{array}$ A. Prepare an income statement for the year ended December 31,2017 .
B. If you were a bank loan officer and Vick Corporation wanted to borrow $\$ 100,000$ from your bank, would you lend the money? Explain.
C. Calculate retained earnings at December $31,2017$ .