Meredith Corporation Is in the Business of Providing Dog and Cat

Essay

Meredith Corporation is in the business of providing dog and cat grooming services to customers within the city of New York.The following information concerning financial activities during 2017 is available at December 31,2017:
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$\begin{array}{lrlr}\text { Grooming revenue } & \$ 130,000 & \text { Salary and wage expense } & \$ 44,000 \\\text { Dividends declared and paid } & 13,000 & \text { Rent expense } & 24,000 \\\text { Equipment } & 40,000 & \text { Furniture } & 60,000 \\\text { Accounts payable } & 30,000 & \text { Accounts receivable } & 23,000 \\\text { Capital stock } & 22,000 & \text { Retaned earnings, Jan. } 1,2017 & 21,000 \\\text { Utilities expense } & 10,000 & \text { Notes payable } & 88,000 \\\text { Cash } & 33,000 & \text { Income tax expense } & 7,000\end{array}$ A. Calculate net income for 2017 .
B. Prepare a statement of retained earnings for the year ended December $31,2017$ .
C. What information can you derive from the statement of retained earnings concerning this company? Explain.