Pulmonary Consulting, Inc., organized April 1, 2007, is operated by Dr. Tobin. How many errors can you find in the following financial statements for Pulmonary Consulting, Inc., prepared after its first month of operation?

Pulmonary Consulting, Inc.
Retained Earnings Statement
April 30, 2008
Net income for the month ............ $15,000
Retained earnings, April 30, 2007 ......... $15,000

Statement of Cash Flows
April 30, 2007
Cash flows from operating activities:
Cash receipts from fees earned ......... $ 92,500
Net cash from operating activities .......... $ 92,500
Cash flows from investing activities:
Cash payments for land ............ 65,000
Cash flows from financing activities:
Cash receipts from issuance of capital stock .... 25,000
Net increase in cash during April ......... $182,500
Cash as of April 1, 2007 .............. 0
Cash as of April 30, 2007 ............ $182,500

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Pulmonary Consulting, Inc. Income Statement April 30, 2007 Fees earned Operating expenses: $92,500 Office salaries expense Rent expense Automobile expense Dividends Miscellaneous expense $42,500 12,500 8,750 5,000 2,750 Total operating expenses 77,500 $15,000 Net income Dr. Tobin Balance Sheet For the Month Ended April 30, 2007 Assets Cash Notes payable Total assets s31,000 50,000 81,000 Liabilities Land 65,000 Stockholders' Equity Capital stock Retained earnings Total liabilities and stockholders' equity $25,000 15,00040,000 $105,000 Dr. Tobin Balance Sheet For the Month Ended April 30, 2007 Assets Cash Notes payable Total assets 31,000 50,000 81,000 Liabilities Land 65,000 Stockholders' Equity Capital stock Retained earnings Total liabilities and stockholders' equity $25,000 5,000 40,000 $105.000