Problem 2.1A (Static) Preparing and Evaluating a Balance Sheet (L02-4) Listed in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31, year 1. Equipment Land Accounts payable Accounts receivable Salaries payable Interest payable $47,040 Buildings 510,000 Capital stock 65,760 Cash 12,720 Furnishings 40,200 Snowmobiles 14,400 Notes payable Retained earnings $600,000 162,000 37,680 70.440 18,480 744,000 Required: a-1. Compute the amount to be shown for retained earnings. a-2. Prepare a balance sheet at December 31, year 1 b. Assume that no payment is due on the notes payable until year 3. Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1