Bill Sanders started a part$-$time consulting practice, Sanders Consulting Associates $($SCA$),$ on January $1,$ Year $1.$ SCA experienced the following transactions during Year $1.$ It is now year$-$end and assume that these transactions are the only transactions the company has. Adjusting entries must be made at year$-$end.

January $1$ Acquired $$5,000$ cash from issuing common stock.

January $15$ Purchased $$3,500$ of supplies on account.

February $20$ Recognized $$14,000$ of consulting revenue for services provided on account.

March $1$ Paid $$3,000$ cash for an insurance policy that covered the company for one year on this date.

April $20$ Collected $$15,175$ of the receivables due from customers.

May $1$ Paid cash salaries of $$8,000$ for Year $1.$

May $25$ Recognized $$2,505$ of accrued operating expenses $($not related to supplies or insurance$)$

that were charged to accounts payable.

June $10$ Paid suppliers $$4,100$ of the amount owed on the accounts payable.

July $15$ Paid cash for advertising, $$1,000.$

August $15$ Purchased land for $$13,750$ cash.

August $30$ Performed $$8,500$ of consulting services for cash.

September $5$ Paid dividends of $$2,000$ to the stockholders.

October $1$ Borrowed $$13,000$ cash by issuing a one$-$year, $6\%$ note to National Bank. Principal and

interest are due at maturity.

November $1$ Sanders collected $$9,000$ cash in advance for services to be provided under a one$-$year

contract beginning on this date, Year $1.$

December $31$ It was determined there were $$2,400$ of supplies on hand.

$(3$ points$)$ What is the amount of net income SCA will show on its Year $1$ Income Statement?

$(3$ points$)$ What amount of liabilities will SCA show on its Balance Sheet as of $12/31,$ Year $1?$

$(3$ points$)$ What is the net amount of cash from operating activities that SCA will report on its Year $1$ Statement of Cash Flows?

$(1$ point$)$ What is the ending balance SCA will report in retained earnings at the end of Year $1?$