Financial statement information about four different companies is as follows.

Instructions
(a) Determine the missing amounts.
(b) Prepare the retained earnings statement for Stills Company. Assume beginning retained earnings was HK$200,000.
(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and statement of financial position.

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Crosby Company Stills Company Nash Company Young Company January 1, 2017 HK$1,500,000 Assets Liabilities Equity HK$ 900,000 HK$1,100,000 500,000 1,370,000 650,000 HK$ 750,000 450,000 2,000,000 1,300,000 100,000 1,000,000 December 31, 2017 Assets Liabilities Equity 550,000 400,000 750,000 800,000 1,400,000 Equity changes in year Additional investment Dividends Total revenues Total expenses 150,000 100,000 3,500,000 3,300,000 150,000 100,000 5,000,000 140,000 4,200,000 3,850,000 3,420,000