The assets and liabilities of Beckwith Garden Supply, Inc., as of December 31, 2020, and revenues and expenses for the year ended on that date follow:

{Requirement}
1. As Chief Financial Officer of Beckwith Garden Supply, answer the following questions and then decide if you are pleased with the company's overall performance in 2020. Be sure to prepare and cite all the accounting information needed to answer these questions.

a. Was Beckwith Garden Supply profitable during 2020? By how much?

b. Did retained earnings increase or decrease? By how much?

c. Who has a greater claim to Beckwith Garden Supply's assets, creditors of the company or the Beckwith Garden Supply shareholders?

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Equipment $119,000 Interest expense.. 10,200 Interest payable 2,500 Accounts payable......... 24,000 Salary expense. 108,500 Building 401,000 Cash....... 41,000 12,700 27,000 Common shares. Land............ Note payable. 99.500 Property tax expense 7,300 Rent expense........... 40.600 Accounts receivable..... 84,600 Service revenue 457.600 Supplies........ 6,800 Utilities expense. 8,500