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The following information for the year ended December 31, 2016, was reported by Nice Bite, Inc.

Accounts Payable	$	49,000
Accounts Receivable		26,800
Cash (balance on January 1, 2016)		103,900
Cash (balance on December 31, 2016)		90,000
Common Stock		156,500
Dividends		0
Equipment		140,700
Income Tax Expense		10,500
Interest Expense		29,900
Inventory		17,600
Notes Payable		27,600
Prepaid Rent		7,400
Office Expense		14,700
Retained Earnings (beginning)		8,300
Salaries and Wages Expense		36,100
Service Revenue		145,800
Utilities Expense		25,500
Salaries and Wages Payable		12,000

Other cash flow information:
Cash from issuing common stock	$	25,000
Cash paid to reacquire common stock		28,100
Cash paid for income taxes		11,400
Cash paid to purchase long-term assets		56,400
Cash paid to suppliers and employees		88,000
Cash received from customers		145,000

Required:

1. Prepare an income statement for 2016.

2. Prepare a statement of retained earnings for 2016.

3. Prepare a balance sheet for 2016.

4. Prepare a statement of cash flows for 2016. (Cash outflows should be entered as negative amounts.)

5. 5-a. What amount of total assets have been financed by the creditors and by the stockholders?

   Financed by Creditors ______ Financed by Stockholders _________ 5-b. Did Nice Bite rely more on creditors or stockholders for its financing at December 31, 2016?

   1. Creditors

   2. Stockholders

5-c. What is your information source?

1. Income Statement

2. Statement of Retained Earnings

3. Balance Sheet

4. Statement of Cash Flows 2-a. What is the amount of retained earnings as of December 31, 2016?

2-b. Did the retained earnings at December 31, 2016, arise primarily from current year earnings or earnings retained from prior years?

• Arise primarily from current year earnings.

• Earnings retained from prior years.

• Approximately equal amounts of both. 2-c. What is your information source?

• Income Statement

• Statement of Retained Earnings

• Balance Sheet

• Statement of Cash Flows

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