(Learning Objectives 4, 5: Preparing an income statement, a statement of changes in equity and a balance sheet; using accounting information to make decisions) The assets and liabilities of Post Maple, Inc., as of December 31, 20X6, and revenues and expenses for the year ended on that date follow.

■ spreadsheet Beginning retained earnings was $117,000, and dividends totaled $38,000 for the year.

❙ Requirements 1 Prepare the income statement of Post Maple, Inc., for the year ended December 31, 20X6.

2 Prepare the company’s statement of changes in equity for the year.

3 Prepare the company’s balance sheet at December 31, 20X6.

4 Analyze Post Maple, Inc., by answering these questions:

a. Was Post Maple profi table during 20X6? By how much?

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

c. Which is greater, total liabilities or total equity? Who owns more of Post Maple’s assets, creditors of the company or Post Maple’s shareholders?