Special Delivery was started on May 1 with an investment of $45,000 cash. Following are the assets and liabilities of the company on May 31, 2012, and the revenues and expenses for the month of May, its first month of operations.

No additional common stock was issued in May, but a dividend of $1,700 in cash was paid.Instructions(a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31, 2012.(b) Briefly discuss whether the company's first month of operations was a success.(c) Discuss the company's decision to distribute adividend.

$ 6,200 Notes payable Salaries and wages expense Equipment Maintenance and repairs expense Insurance expense Accounts receivable $28,000 2,000 Service revenue Advertising expense Accounts payable 10,400 800 56,000 2,900 400 2,400 Cash 15,800