On January 1 of Year 2, the following information was extracted from the Carter Company's accounting records: 

$225 in cash; land of $1,875; notes payable of $525; and common shares of $945.

Required
a. Determine the amount of retained earnings as of January 1 of year 2.
b. After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a cash dividend of $325 to shareholders. Can the company pay this dividend?
C. As of January 1 of year 2, what percentage of the assets were acquired from creditors?
d. As of January 1 of year 2, what percentage of the assets were acquired from investors?
e.Beginning January 1 of year 2, what percentage of the assets were acquired from retained earnings?
F. Create an accounting equation using percentages instead of dollar amounts on the right side of the equation.
gram. During year 2, the Carter Company earned cash receipts of $520, paid cash expenses of $310, and paid a cash dividend of $51. ( Hint : It is helpful to record these events under an accounting equation before preparing the statements.)
g-1. Prepare an income statement dated December 31 of year 2.
g-2. Prepare a statement of changes in stockholders' equity dated December 31 of year 2.
g-3.Prepare a balance sheet dated December 31 of year 2.
g-4. Prepare a statement of cash flows dated December 31 of year 2.
j. What is the balance in the income account on January 1 of year 2?