2. Using the retained earnings equation and an opening balance of so, work backward to compute the amount of net income for the year that ended December 31, 2020. Net Income 3. As of December 31, 2020, did most of the financing for assets come from creditors or shareholders? Shareholders Creditors 4. Assuming that Reader Direct generates net income of 53,700 and pays dividends of $2.200 in 2021, what would be the company's ending Retained Earnings balance at December 31, 2021? Ending retained earrings Ken Young and Kim Sherwood organized Reader Direct as a corporation; each contributed $53,900 cash to start the business and received 4,400 shares. The store completed its first year of operations on December 31, 2020. On that date, the following financial items for the year were determined: cash on hand and in the bank, $49.700; amounts due from customers from sales of books, $29,500; property and equipment, $57,000, amounts owed to publishers for books purchased, $9.200, one-year note payable to a local bank for $4.650. No dividends were declared or paid to the shareholders during the year. Required: 1. Complete the balance sheet at December 31, 2020: READER DIRECT Balance Sheet At December 31, 2020 Assets Liabilities $ Cash Accounts receivable Property and equipment 49.700 29,500 57.000 Accounts payable Note payable 9.200 4,650 Total liabilities 13,850 Shareholders' equity 107.800 Common shares Retained earnings Total shareholders' equity 136.200 Total liabilities & shareholders equity 107,800 121.650 Total assets $ $