The adjusted trial balance for Tybalt Construction as ofDecember 31, 2017, follows.

TYBALT CONSTRUCTION Adjusted Trial Balance December 31, 2017
No.	AccountTitle	Debit				Credit
101	Cash	$	7,000
104	Short-term investments		23,500
126	Supplies		8,700
128	Prepaid insurance		7,500
167	Equipment		55,000
168	Accumulateddepreciation—Equipment					$	27,500
173	Building		180,000
174	Accumulateddepreciation—Building						60,000
183	Land		53,050
201	Accounts payable						16,000
203	Interest payable						2,700
208	Rent payable						3,000
210	Wages payable						2,800
213	Property taxes payable						1,400
233	Unearned professional fees						7,500
251	Long-term notes payable						67,000
307	Common stock						7,000
318	Retained earnings						125,100
319	Dividends		12,500
401	Professional fees earned						105,000
406	Rent earned						17,000
407	Dividends earned						2,800
409	Interest earned						2,000
606	Depreciationexpense—Building		13,200
612	Depreciationexpense—Equipment		8,250
623	Wages expense		25,000
633	Interest expense		5,000
637	Insurance expense		9,300
640	Rent expense		11,500
652	Supplies expense		7,300
682	Postage expense		3,000
683	Property taxes expense		3,300
684	Repairs expense		7,700
688	Telephone expense		2,600
690	Utilities expense		3,400
	Totals	$	446,800			$	446,800

The December 31, 2016, credit balance of the Retained Earningsaccount was $125,100. Tybalt Construction is required to make a$6,500 payment on its long-term notes payable during 2018.

Required:
1a. Prepare the income statement for the calendar-year2017.
1b. Prepare the statement of retained earnings forthe calendar-year 2017.
1c. Prepare the classified balance sheet atDecember 31, 2017.
2. Prepare the necessary closing entries atDecember 31, 2017.
3. Use the information in the financial statementsto compute the following ratios: